GBP is ignoring softer CBI sentiment – Scotiabank

Pound Sterling (GBP) is up a notable 0.6% vs. the US Dollar (USD), extending Monday’s impressive gains and pushing back toward its recent multi-year high from mid-June, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP ignores softer CBI sentiment, threatens fresh multi-year highs

“CBI business sentiment figures were slightly softer than expected, however the market appears to be ignoring the data and setting its sights on the outlook for relative central bank policy. Yield spreads are providing GBPUSD with a fundamental lift, largely reflecting renewed dovish expectations for the Fed.

“This week’s release calendar is light, leaving the focus squarely centered on central bank expectations and the relatively heavy BoE speaking schedule. The last two sessions have provided GBPUSD with a meaningful recovery and a push back toward its recent multi-year highs from mid-June.”

“The 50 day MA (1.3412) has once again been confirmed as an important level of medium-term support, and we look to near-term support in the 1.1520-1.1550 area. We see little additional longer-term resistance ahead of 1.3750.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.