GBP a relative outperformer on labor data surprise – Scotiabank

The Pound Sterling (GBP) is down only 0.2% against the US Dollar (USD) and outperforming all of its G10 peers into Thursday’s NA open. In the longer run, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

GBP outshines G10 peers after labor data surprise

"The latest employment release was broadly positive, with an upside surprise in wage growth and a stronger than expected employment change. Labor data had been highlighted as a key concern by the BoE’s Gov. Bailey and a core consideration for the central bank’s policy stance. Markets are still pricing nearly one full 25bpt cut for the next meeting in August, but have softened their expectations for easing by year end."

"The bull trend has faltered on this week’s break of the 50 day MA (1.3505), and the RSI’s plunge into (sub-50) bearish territory has been notable. Support appears to be holding around the late June low, in the upper 1.33s. We see near-term resistance at 1.3480."