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fxAug 5, 2026, 6:43 PM

Scotiabank: GBP/USD Range Trade Holds Ahead of Q2 GDP

Scotiabank strategists see the British Pound trading slightly firmer versus the Dollar, supported by better PMIs but with a fading fundamental backdrop as 2-year spreads retreat.

GBPUSD

Scotiabank strategists Shaun Osborne and Eric Theoret note that GBP/USD is modestly higher, holding within a range ahead of the UK’s second-quarter GDP release.

A slightly better-than-expected PMI reading offers short-term support, but the broader fundamental picture is weakening. Two-year yield spreads have given back recent gains, prompting the bank to maintain its range-trade outlook for now.

Source: FXStreet Forex News