GBP: Markets look through BoE Gov. Bailey comments on debt & curve – Scotiabank

The Pound Sterling (GBP) is entering Tuesday’s NA session flat against the US Dollar (USD) and also showing its first signs of meaningful strength following the pullback from its July 1 high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP is trading flat on the daily chart

"Second tier fiscal data revealed greater than expected borrowing in June, and comments from BoE Gov. Bailey have touched on the topic as he highlighted the impact of fiscal policy on curve steepening. The near-term rate outlook continues to price around one 25bpt rate cut for August and a cumulative 50bpts by year-end."

"The RSI is around 50 but it has yet to push back into decisively bullish territory. The near-term focus is on the 50 day MA (1.3518) and we see a near-term range bound between 1.3450 support and 1.3520 resistance."