GBP soft but finds modest support - Scotiabank

Pound Sterling (GBP) is down a modest 0.3% and showing relative gains against nearly all the G10 currencies, once again trading in tandem with its peers on trade-related headlines while still lagging in terms of magnitude, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP finds modest support from Retail Sales surprise

"The release of domestic Retail Sales data appears to have offered support in early European trade as market participants digested the unexpectedly strong (and positive) m/m print for March."

"The release is unlikely to influence policymakers ahead of the May 8 BoE rate decision, given the well communicated bias to further accommodation. Markets are pricing in 27bpts of easing for the meeting."

"The trend remains bullish, given the sequence of higher lows and higher highs. The RSI is softening but still in bullish territory. Near-term price action appears to have settled within a range roughly bound between support in the low 1.32s and resistance above 1.3400."