The British pound remained largely flat against the US dollar (USD) heading into the North American session on Monday, underperforming most of its G10 peers, according to Sean Osborne and Eric Theort, chief FX strategist at Scotiabank.
UK lending data is slightly weaker than expected
“The British pound is trading flat against the US dollar and underperforming all G10 currencies as we head into the North American session on Monday. Second-tier lending data was slightly weaker than expected and the final manufacturing PMI reading remained firmly in marginally expansionary territory with a reading of 50.2.”
“BoE risks are elevated as we look ahead to the scheduled speech from popular MPC Dhingra at 10:30am EDT, ahead of two speeches from moderate MPC member Mann on Wednesday and Thursday. The outlook for the BoE remains bearish with markets pricing almost entirely at 25 basis points for December and a backlog of 53 basis points by June.”
