GBP is outperforming on stronger trade – Scotiabank

The Pound Sterling (GBP) is up 0.3% against the US Dollar (USD) and outperforming all of the G10 currencies as we head into Thursday’s NA session with gains driven by the release of stronger than expected domestic data, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP outperforms on industrial production data

"Trade and industrial production both surprised to the upside in August, offering a positive offset to the disappointing employment figures released earlier this week. Sentiment remains a dominant driver for GBP and spread correlations are weak, with markets focused on fiscal developments and the need for a larger buffer into the November 26 budget release."

"Tthe RSI is at 50 and the GBP’s latest recovery is threatening a break of the 50 day MA at 1.3476. We see limited resistance ahead of 1.35 and look to a near-term range bound between 1.3380 and 1.3480."