Scotiabank strategists Shaun Osborne and Eric Theoret note British Pound (GBP) is underperforming core European peers but has still reached a three‑month high against the US Dollar (USD).
They see markets as cautious ahead of a heavy United Kingdom (UK) data calendar including wages, jobs, Consumer Price Index (CPI) and Retail Sales
Short‑term technicals for GBP/USD are described as bullish, with scope to retest the May high at 1.3660 and support at 1.3530/50. Pound climbs but faces key UK data “Sterling is lagging its core European peers somewhat on the day but gains are still enough to lift the pound to a three-month high against the USD.” “There are no major factors or note behind the pound’s intraday performance.” “Markets are perhaps a little cautious ahead of this week’s barrage of UK data—wages, jobs, CPI, Retail Sales etc..” “Bullish—Minor new highs for Cable above the July peak alongside solid underlying trend momentum point to GBP gains pushing on to retest the May high at 1.3660. Short-term support is 1.3530/50.” Author