Forex
GBP/USD Tests Five-Week Lows as Investors Await BoE and Fed Decisions
The British Pound (GBP) is trading at five-week lows against the US Dollar (USD), down 0.23% on Monday, as investors await key monetary policy decisions from both central banks this week.
The GBP/USD pair tested the low of 1.3464 but trimmed some losses to trade around 1.3492 at writing time.
Scotiabank strategists Shaun Osborne and Eric Theoret see the Pound as soft against the Dollar, yet still outperforming most G10 currencies in a risk-off environment.
The analysts expect a hawkish hold from the Bank of England (BoE) on Thursday, with a possible 25-basis-point hike in November, citing supportive UK-US yield spreads and technical support around 1.3450-1.3420.