Home›Forex›Major Pairs›GBP/USD stays near 1.33 as UK lending beats and BoE ex…

GBP/USD stays near 1.33 as UK lending beats and BoE expectations stabilize

Scotiabank expects the BoE Monetary Policy Committee to hold at 3.75%, keeping near-term GBP/USD moves largely confined to the 1.3250 to 1.3350 band.

Reported · Written up by our desk · Major Pairs

Scotiabank strategists Shaun Osborne and Eric Theoret said GBP/USD is trading flat around 1.33, supported by stronger UK lending data and signs that expectations for the Bank of England are stabilizing. They noted that the UK’s policy and fiscal narrative remains important for sentiment toward government debt, with BoE rate expectations showing modest stabilization and supporting the pound through yield spreads.

Scotiabank also pointed to a likely hawkish hold from the BoE, with the Monetary Policy Committee expected to deliver a decision at 3.75%. Technically, the strategists said the pound has been range bound, with June levels spanning 1.3150 to 1.3550.

On momentum, they described RSI as stabilizing in the lower 40s, implying modest bearish pressure below the neutral 50 level. Scotiabank said, absent a break of the range, it expects near-term movement to stay between 1.3250 and 1.3350.

Latest closeGBP/USD 1.329 ▼0.5%

More like this

Sources