Scotiabank strategists note GBP stability at 1.33 as UK lending data and BoE rate expectations support the currency before Thursday’s policy meeting.
The British pound remains range-bound at 1.33 against the US dollar, supported by stronger UK lending data and stabilizing Bank of England rate expectations. Mortgage approvals and lending figures exceeded expectations, providing modest support to GBP/USD within a tight June range of 1.3150 to 1.3550.
Market focus shifts to the BoE’s Monetary Policy Committee meeting on Thursday, where a hawkish hold at 3.75% is anticipated. UK fiscal narratives and government debt sentiment remain key drivers, with political developments adding to policy risk over the near term.
Technical indicators suggest GBP/USD is consolidating between 1.3250 and 1.3350, with the relative strength index showing signs of stabilization. The Federal Reserve’s upcoming decision at 2pm ET adds to near-term volatility risks.