GBP sees modest gains – Scotiabank

Pound Sterling (GBP) is up 0.5% against the US Dollar (USD) but marginally underperforming most of the G10 currencies within the context of broad-based USD weakness, Scotiabank's Chief FX Strategist Shaun Osborne notes.

BoE’s Bailey strikes dovish tone

"The performance is typical for GBP, as it has recently been lagging its G10 peers through the larger trade-related swings in the USD. Domestic developments have been limited and remain secondary to the market’s focus on trade."

"Wednesday’s comments from BoE Gov. Bailey leaned dovish, highlighting the economic headwinds posed by US tariffs – despite the UK’s preferential 10% rate. The next BoE meeting (May 8) is one where the central bank will produce fresh forecasts."

"GBP/USD is bullish, with a clear trend of higher lows and higher highs and an RSI that remains firmly in bullish (50+) territory. Near-term support is expected at 1.3220 with resistance closer to 1.34."