Pound Supported by UK Data, But Sustained USD Gains Limited

Brown Brothers Harriman strategist Elias Haddad argues that the UK's improving disinflation trend and solid Q2 GDP growth should provide support for the British pound against both the US dollar and the euro.

However, he sees only limited room for a lasting advance in GBP/USD, suggesting the data mix is not enough to fuel sustained gains against the dollar.

The view leaves cable in a supported but range-bound setup, with sterling likely to hold up better against the euro than to break materially higher versus the greenback.