The British pound (GBP) fell in Asian trade but steadied and recovered somewhat in European trading, said Shaun Osborne, chief FX strategist at Scotiabank.
GBP/USD stabilizes around the 1.28 low zone
“UK data reports were more or less as expected on lending and mortgage approvals, but CBI retail survey data (volatile) looked weak for July. Swaps are pricing in a marginally higher risk of a rate cut this week (14bps) than last week (when pricing was for easing risk of 10-11bps).”
“GBP’s drift from the mid-July peak above 1.30 suggests that some rate cut potential may already be priced into the spot rate.”
“The spot rate maintains a soft tone, but losses could be stabilising around the lower 1.28 area (50% retracement support of the June/July rally). Reclaiming 1.29 intraday would be positive, but the soft tone is likely to persist for a few more days and perhaps extend to 1.2775 or so before stabilising.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
