Scotiabank: GBP/USD Stuck Around 1.33 as Fiscal Story Weighs
Sterling trades flat near 1.33 with support from improved UK lending figures, but policy concerns cap gains, Scotiabank analysts say.
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Scotiabank strategists Shaun Osborne and Eric Theoret note that GBP/USD is hovering around 1.33, held back by uncertainty over the UK fiscal outlook. The pair has found some footing from stronger British lending data and more settled BoE rate expectations.
The analysts stress that the narrative around government borrowing and spending remains a key driver for pound sentiment. Without clarity on that front, the pound's upside looks limited.
In their view, the currency is likely to stay range-bound against the dollar until fiscal risks recede.
Source: FXStreet Forex News