GBP Holds Steady Amid Hawkish Hold Expectations

The British Pound (GBP) is trading flat against the US Dollar (USD), hovering around the 1.33 mark, according to Scotiabank strategists Shaun Osborne and Eric Theoret.

This stability is attributed to stronger UK lending data and stabilizing Bank of England (BoE) expectations. The BoE's Monetary Policy Committee (MPC) is expected to deliver a hawkish hold at 3.75%.

The GBP has been consolidating within a tight range between 1.3150 and 1.3550 since June, with near-term moves seen between 1.3250 and 1.3350.

Risk is elevated over the next 24 hours as traders await the Federal Open Market Committee (FOMC) meeting on Wednesday at 2pm ET and the BoE's decision on Thursday.