GBP is outperforming on crosses as BoE repricing shifts with Fed – Scotiabank

The Pound Sterling (GBP) is trading flat against the US Dollar (USD) and outperforming all of the G10 currencies on the crosses, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP is flat vs. USD

"The outlook for relative central bank policy is offering some stability for GBP, given the softening of easing expectations for both the BoE and Fed. Domestic releases have been limited, and fiscal concerns remain elevated as markets eye the softening of demand for gilts."

"The technical picture has shifted bearishly following losses on Wednesday and Thursday. The 50 day MA (1.3468) has been clearly broken, and the GBP is threatening a break of the early September low just above 1.33. We look to a near-term range bound between 1.3320 and 1.3420."