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GBP/USD had been firm leading into the NY session around Friday’s closing levels, although rather reflecting the general tone in the USD rather than anything GBP-specific, as analysts at Scotiabank noted where BoE DG Broadbent’s comments at 13.00ET have been sighted as a key event.  

Key Quotes:

“There were no data releases today and markets await BoE DG Broadbent’s comments at 13.00ET for clues on the monetary policy outlook (markets are thinking that Broadbent might tip his hand towards the hawkish camp ahead of the August policy meeting).”

“Domestic political risks may recede modestly as the UK Parliament heads for summer recess but Brexit risks remain amid concerns that “hard” Brexit risks are rising following the government’s fumbled White Paper on the UK’s future relationship with the EU.”

“GBPUSD short-term technicals: neutral – The GBP extended gains modestly to test the mid 1.31 area overnight before sliding in light trade.”

“Intraday patterns look promising and gains may extend modestly above 1.3150 – towards the low/mdi 1.32s.”

“But the broader trend remains soft and a sustained period of relative strength – well above the 40-day MA at 1.3244 currently – is needed to steady the pound’s technical position.”