Pound Sterling (GBP) is fractionally firmer on the day against a generally weaker US Dollar (USD) but it has lost ground to the Euro (EUR) again, Scotiabank’s Chief FX Strategists Shaun Osborne and Eric Theoret note.
GBP extends consolidation
“UK data reflected a deeper than expected contraction in the July Construction PMI, which fell to 44.3, the weakest in five years. A UK think tank reported that Chancellor Reeves has a GBP51bn shortfall that she will need to fill in the October budget.”
“Price action continues to consolidate and trend momentum remains flat on the intraday study. The daily GBP chart reflects the same bullish reversal signal against the USD Friday that other charts reflect but Cable is lagging somewhat. Spot gains through Monday’s 1.3330 high may lift spot to the upper 1.33s (1.3365 resistance). Support is 1.3265/75.”
