GBP Flat Against USD as BoE Tightening Expectations Remain Muted
The British Pound (GBP) is trading flat against the US Dollar (USD), but softer on crosses, according to Scotiabank's Global FX Strategy team.
UK PMI data has offered little new insight, with modest expansionary prints in the low 50s. Markets are pricing minimal tightening for the September Bank of England (BoE) meeting and modest moves for November.
The GBP/USD technicals remain neutral to bearish, with support around 1.3500-1.3450. However, the broader trend from June remains bullish.
Markets expect only 4 basis points of tightening at the September 17th meeting, while 18 basis points are priced for the November 5th meeting, which is also an Inflation Report/forecast meeting and follows the government's Autumn Statement/budget scheduled for October 28th.