GBP quiet despite improvement in manufacturing PMI – Scotiabank

The Pound Sterling (GBP) is entering Thursday’s NA session flat against the US Dollar (USD), outperforming all the G10 currencies with the exception of Euro (EUR), Scotiabank's Chief FX Strategist Shaun Osborne notes.

Markets await for BoE next week

"Second-tier lending and money supply data were mixed, while the final manufacturing PMI offered a modest surprise – printing a still-contractionary (sub-50) 45.4 while still improving from the initial 44.0 release. There are no major-market moving events or releases scheduled ahead of next Thursday’s BoE policy decision, where markets are pricing in 27bpts of cuts."

"The central bank’s forecast update will be critical, as it will provide insight into policymakers’ thinking around tariffs, trade, and the implications for rates. Markets are pricing a cumulative 100bpts of rate cuts by year end."

"The trend is bullish, given the sequence of higher highs and higher lows since March. The RSI has softened somewhat, but waning momentum is not enough to violate the bull trend. For now, we highlight the recent range and GBP/USD’s movement roughly bound between the mid-1.32s and mid-1.34s."