GBP Soars to Three-Month High as Markets Eye UK Data Releases
The British Pound (GBP) has reached a three-month high against the US Dollar (USD), despite underperforming its core European peers. According to Scotiabank strategists Shaun Osborne and Eric Theoret, markets are cautious ahead of a heavy United Kingdom (UK) data calendar, which includes wages, jobs, Consumer Price Index (CPI), and Retail Sales. The short-term technicals for GBP/USD are described as bullish, with scope to retest the May high at 1.3660.
The strategists note that sterling has gained enough to lift the pound to a three-month high against the USD, but there are no major factors behind this performance. They emphasize that markets are cautious ahead of the upcoming UK data release, which may impact the pound's momentum. The bullish bias in GBP/USD is attributed to minor new highs above the July peak and solid underlying trend momentum.