GBP down modestly from Thursday's multi-year high - Scotiabank

Pound Sterling (GBP) is also down 0.2% vs. the US Dollar (USD) with a modest pullback from Thursday's fresh multi-year high, Scotiabank's Chief FX Strategist Shaun Osborne notes.

BoE/Fed shift is offering fundamental support

"As with the ECB (and EUR), the shifting outlook for the BoE is offering support to the pound as market participants reassess their expectations for easing. The BoE is currently priced for no change, and markets are fading their outlook for cuts into year-end - now pricing 41bpts of easing vs. 57bpts in early May."

"The near-term domestic release calendar offers some risk as we look to next week's employment, industrial production, and trade figures."

"The trend is bullish and a fresh-multi-year high was reached on Thursday. The RSI's current reading of 61 leaves ample room for further upside, and the September/April highs around 1.34 are likely to provide meaningful support from here. An extension of gains above 1.36 should find limited resistance ahead of the early 2022 high around 1.3750."