Pound Sterling (GBP) is soft, down a marginal 0.2% against the US Dollar (USD) and a relative performer among the G10 in an environment of mild, albeit broad-based USD strength, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
BoE Governor Bailey strikes cautiously neutral tone.
“Comments from BoE Gov. Bailey are providing some near-term headline risk and can be characterized as cautiously neutral with a focus on the near-term risk of inflation balanced against medium to longer term concerns about the outlook for the UK labor market. Fundamentally, UK-US yield spreads are offering support to GBP/USD.”
“GBP/USD is in a clear bull trend with a multimonth sequence of higher lows and higher highs following its recovery from its January low around 1.22. Its latest push has cleared fresh multi-year highs and its momentum remains bullish but well short of overbought levels, leaving ample room for further gains
- EUR/USD Price Forecast: Needs to break above 20-day for sustained recovery
- Euro hesitates near lows against the British Pound with the ECB in focus
- Euro steadies as markets digest US inflation data and await ECB decision
- Gold enters credibility test as inflation repricing reaches an inflection point
- Euro: Downtrend against US Dollar targets lower supports – UOB
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