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GBP/USD breaks below 1.35, spotlight turns to mid-1.34 support
Scotiabank notes that limited UK data and an empty BoE calendar ahead of Governor Bailey’s speech leave political sentiment and oil price moves as key drivers.
Scotiabank strategists Shaun Osborne and Eric Theoret said GBP/USD is soft and has slipped below 1.35, making levels in the mid-1.34s, followed by 1.33, the next areas to watch.
They framed the move as part of a broader USD-strength backdrop, with the pair still considered a mid-performer among G10 currencies even as it is down 0.3% versus the dollar.
According to Scotiabank, domestic catalysts have been sparse, and the BoE calendar is empty ahead of Governor Bailey’s speech on Friday, which has left fewer UK-specific drivers for traders to anchor to.
The strategists added that prior Pound strength was linked to politically related sentiment around PM Burnham, but they said a surge in oil prices appears to be weakening that support by pushing options markets to price more downside protection again.
Latest closeGBP/USD 1.348 ▼0.2%