GBP outperforming with marginal gain – Scotiabank

Pound Sterling (GBP) is up a modest 0.2% in quiet trade, outperforming most of the G10 currencies heading into Monday’s NA session, Scotiabank's Chief FX Strategist Shaun Osborne notes.

CBI sentiment better than expected

"The CBI sentiment figures were slightly better than expected but still negative overall and at the lower end of their recent historical ranges. There are no major data releases scheduled ahead of the May 8 Bank of England policy decision."

"Markets are pricing 26.5bpts of easing (more than one full cut) and pricing just over 90bpts of cumulative easing by December. The BoE will also release its lates inflation report, along with a fresh set of forecasts that will provide some insight into the Bank’s views on the economic impact of US tariffs."

"GBP/USD’s bullish trend is intact, and looks set be maintained despite last week’s pullback. The RSI is bullish and hovering well above 50 in the mid-60s. Near-term support is expected in the mid/lower-1.32s and resistance is expected above 1.3400."