The Pound Sterling (GBP) is modestly higher on the session, tracking its G10 peers for the most part. BoE DG Lombardelli reiterated her caution on the policy outlook in an interview with the FT, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP gains modestly

“The latest comments go a little further in defining the ‘cautious’ approach to policy adjustment that her colleagues have referenced in recent comments. Lombardelli wants to see more evidence of the ‘disinflation process continuing’ before easing again. Markets continue to price in around 80% risk of a 25bps cut in February, with the Bank widely expected to take a pass at the December decision.”

“Cable has been pressuring minor trend resistance off the early November high in spot over the past couple of sessions and has managed to make a clean break above that point (now intraday support) at 1.2591 so far today.”

“Gains are not pushing on decisively above recent peaks around 1.2615 at this point, however, and the broader pattern of recent trade still looks more like a consolidation ahead of renewed losses rather than a reversal in the November track lower in the pound. Short-term gains could extend to the mid/upper 1.26s but a move through 1.2715 resistance is needed to inject a little more technical strength in the near-term outlook.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD retreats from tops post-US PCE, back near 1.0540

EUR/USD retreats from tops post-US PCE, back near 1.0540

The bearish sentiment in the US Dollar remains in place and supports EUR/USD's constructive outlook, keeping it in the 1.0540 region after the release of US inflation data, as measured by the PCE, on Wednesday.

EUR/USD News
GBP/USD recedes to 1.2640 on US PCE data

GBP/USD recedes to 1.2640 on US PCE data

GBP/USD remains positively oriented in the 1.2640 zone as the Greenback experiences a marked pullback following the PCE inflation release.

GBP/USD News
Gold remains sidelined near $2,640 following US inflation prints

Gold remains sidelined near $2,640 following US inflation prints

Gold remains on the positive foot near $2,640 per troy ounce, as US inflation data matched initial estimates in October, while US yields display a negative performance across the curve.

Gold News
The clock is ticking for France

The clock is ticking for France

A French political problem is turning into a problem for financial markets. The budget deficit in France is 6% of GDP, if the planned reforms are not enacted, then the deficit could rise to 7% of GDP next year. This is the level when bond vigilantes start to sniff around.

Read more
Eurozone PMI sounds the alarm about growth once more

Eurozone PMI sounds the alarm about growth once more

The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures