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