GBP soft vs. USD but performing relatively well vs. G10 – Scotiabank

Pound Sterling (GBP) is soft, down a marginal 0.2% against the US Dollar (USD) and a relative performer among the G10 in an environment of mild, albeit broad-based USD strength, Scotiabank's Chief FX Strategist Shaun Osborne notes.

BoE Governor Bailey strikes cautiously neutral tone

"Comments from BoE Gov. Bailey are providing some near-term headline risk and can be characterized as cautiously neutral with a focus on the near-term risk of inflation balanced against medium to longer term concerns about the outlook for the UK labor market. Fundamentally, UK-US yield spreads are offering support to GBP/USD."

"GBP/USD is in a clear bull trend with a multimonth sequence of higher lows and higher highs following its recovery from its January low around 1.22. Its latest push has cleared fresh multi-year highs and its momentum remains bullish but well short of overbought levels, leaving ample room for further gains."