GBP tracks broader USD tone – Scotiabank

The Pound Sterling (GBP) continues to track the broader trend in the USD, absent any major fundamental developments at home, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

GBP regains some ground versus EUR

"The RICS House Price Index dropped to a lower than expected 11 in February (vs. 20 forecast); the RICS puts the blame on rising uncertainty and weaker confidence, with recent tax increases and slow progress on cutting rates weighing on sentiment." 

"The BoE’s cautious easing approach is supportive for the GBP, however, and may help the GBP regain a little ground on the EUR, with the cross showing signs of steadying around the 0.8450 area after sharp, early March gains." 

"A mild loss for the GBP leaves spot trading well within yesterday’s range which stretched GBP gains to just under 1.30— the highest since early November. Trends remain GBP-supportive on the short– and medium-term charts and the GBP should find support on minor dips ahead of 1.2910 support. Resistance is 1.30 ahead of a push on to 1.3125/50."