Scotiabank strategists cite stronger UK lending and steady BoE expectations as key supports for the pound at current levels.
The British pound remains range-bound against the US dollar, trading near 1.33, as stronger UK lending data and stabilizing Bank of England policy expectations provide support. Strategists note that fiscal narratives continue to influence sentiment toward the UK government, adding a layer of policy risk to the currency pair.
Recent data showed resilience in UK lending activity, countering earlier concerns about economic slowdown. BoE rate expectations have also steadied, reducing volatility in GBP/USD. However, strategists caution that shifts in fiscal policy or unexpected economic prints could disrupt the current equilibrium.
No immediate market reaction was reported, with the pair maintaining its narrow trading range for now.