GBP/USD Sees Steady Ground Ahead of BoE Meeting

The British Pound has been relatively stable against the US Dollar as it continues its recovery from last week's lows. According to Scotiabank strategists Shaun Osborne and Eric Theoret, the GBP/USD pair is little changed but risk is expected to rise with upcoming UK trade and industrial data releases.

On Friday, markets will assess the latest trade and industrial production data, which could have an impact on the Pound's performance. Next week's jobs and CPI figures are also expected to add to the risk, particularly ahead of Thursday's Bank of England (BoE) meeting.

The BoE is widely anticipated to deliver a hawkish hold at its next meeting, with markets already pricing in 25 basis points of tightening for the November 5th rate decision. Short-term rates markets are expecting around 19 basis points of tightening.

Fiscal concerns remain top of mind for sentiment, with the budget scheduled for late October being a key event. Despite this, the trend in sentiment remains constructive for the Pound, according to Osborne and Theoret.