GBP flat against USD ahead of CPI Wednesday – Scotiabank

Pound Sterling (GBP) is also entering Tuesday’s NA session unchanged against the US Dollar (USD) and stuck within a flat channel at the upper end of its longer-term range, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Near-term support is located around 1.3250

"This week’s data highlight will be Wednesday’s CPI release for the month of April, with expectations of a significant increase in headline and a moderate increase in core."

"The release is unlikely to shift near-term expectations for the BoE, where rates are expected unchanged for the next meeting in June. August is currently priced at 18bpts, with September fully priced for a 25bpts cut."

"GBP/USD’s price action continues to be defined by the flat range bound between the mid-May low in the mid-1.31s and the late April high in the mid-1.34s. Momentum is neutral and we look to near-term support around 1.3250."