The Pound Sterling (GBP) weakens and enters Wednesday’s American session with a modest decline, trading in tandem with the Euro (EUR), around the Trump trade/Fed headlines, Scotiabank’s Chief FX Strategist Shaun Osborne notes.
UK PMIs generally weaker
“The UK’s PMI releases were generally less constructive, with significantly weaker (though as expected, at 44) Manufacturing PMI and disappointing sub-50 Services PMI. BoE Gov. Bailey will speak in Washington at 1:15pm and his comments will be closely scrutinized to see if they follow recent MPC comments about the disinflationary impact of US tariffs.”
“We look for near-term consolidation around 1.33 and note the fact that GBPUSD’s most recent highs were not confirmed by the RSI, offering negative divergence in momentum. We look to near-term support between 1.3220 and 1.3250 and resistance between 1.3400 and 1.3420.”