GBP Holds Near 1.3300 Amid UK Economic Resilience

The Pound to Dollar exchange rate remained near 1.3325 on Friday, still around 0.6% higher this month despite a strong run of UK economic data. Scotiabank noted that June retail sales were far stronger than expected, and the preliminary July business surveys also surprised positively.

However, market participants are not responding to these fundamentals, with political uncertainty and concerns over the UK's fiscal position continuing to weigh on the Pound.

The bank anticipates a hawkish hold alongside updated economic forecasts from next Thursday's Bank of England meeting. Markets currently price around 16 basis points of tightening by September and 32 basis points by November.