British Pound: BoE tightening expectations lend support against US Dollar – Scotiabank
Scotiabank strategists Shaun Osborne and Eric Theoret note GBP/USD is steady after reaching a one-week high, with the British Pound (GBP) supported by rising Bank of England (BoE) tightening expectations and sensitivity to higher Oil prices.
Scotiabank analysts Shaun Osborne and Eric Theoret report that the British Pound (GBP) remains steady against the US Dollar (USD) after achieving a one-week high, buoyed by increasing expectations of tighter Bank of England (BoE) policies and the impact of higher oil prices. The strategists do not anticipate a policy adjustment during the upcoming Thursday meeting, but anticipate a modest tightening of 17 basis points by November 5th, and a cumulative tightening of 32 basis points by December 17th.
The pound is experiencing a clear bullish trend since June, with resistance near 1.3650 and support around 1.3480. While the RSI is slightly above 50, its gains are minimal. The absence of significant data releases ahead of the Friday trade and industrial production figures contributes to the market's neutrality or bullish sentiment.
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