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GBP is showing strength – Scotiabank

The Pound Sterling (GBP) is up 0.3% against the US Dollar (USD) and outperforming most of the G10 currencies into Monday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Markets fade expectations for BoE easing

"Yield spreads are steady and holding on to last week’s gains, offering the pound support as market participants look to Thursday’s PMI’s and Friday’s retail sales. Markets are fading their expectations for easing with less than 50bpts priced by year end. A 25bpt cut is expected for August, but markets appear to be debating the extent of additional easing required for 2025."

"The RSI is recovering and close to the neutral threshold at 50. We note the importance of recent support at 1.34 and see the near-term balance of risk favoring upside. The near-term range is expected to be bound between support at 1.3400 and resistance above 1.3550."

EUR steady ahead of ECB and PMI’s – Scotiabank

The Euro (EUR) is steady, up a marginal 0.1% as it shows signs of continued stabilization around 1.16, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
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US Dollar slips as trade tensions flare, Fed uncertainty weigh on sentiment

The US Dollar (USD) kicks off the week on the back foot, slipping against major currencies in Monday trading. Investors are reacting to renewed trade tensions ahead of the August 1 deadline and a generally cautious market sentiment.
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