GBP Rides Strong Sentiment Ahead of Budget and Kiev Visit
The British Pound has maintained its strength against the US Dollar despite broad USD gains. Scotiabank strategists Shaun Osborne and Eric Theoret report that GBP is outperforming all G10 peers. According to them, 'The pound is entering Monday's NA session nearly unchanged vs. the USD while outperforming all of the G10 currencies in an environment of broadbased USD strength.'
The data calendar is light for now, and attention has shifted towards PM Burnham's visit to Kiev and the upcoming October 28 budget. The strategists note that 'Fiscal developments have been limited but media are already tightening their focus on the autumn budget scheduled for October 28.'
Improved sentiment in options markets is another positive sign, with risk reversals indicating a material improvement in market mood towards GBP. Osborne and Theoret see scope for further gains toward the 2026 high in the upper-1.38s.