GBP: Chancellor Reeves reinforces commitment to fiscal rule - Scotiabank

The Pound Sterling (GBP) is up 0.2% against the US Dollar (USD), a mid-performer among the G10 currencies in an environment of broad-based USD weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP is a mid-performer for now

"Domestic lending data were mixed and market participants remain focused on fiscal developments. Comments from Chancellor Reeves pushed back on calls for a wealth tax and reinforced a broader commitment to the government's self-imposed fiscal rule. Yield spreads are steady and measures of sentiment are showing signs of stabilization."

"The GBP's technicals are leaning marginally bearish as it remains below its 50 day MA (1.3468) and its RSI hovers in the mid-40s. Last week's price action has revealed clear support in the mid/lower-1.33s, however we remain neutral in the absence of a break back above 1.35. We look to a near-term range bound between 1.3380 and 1.3480."