The Pound Sterling (GBP) is attracting some clear support after easing briefly under 1.29 earlier. Gains above 1.2940 would lift the GBP back towards 1.30, Scotiabank’s chief FX strategist Shaun Osborne notes.

Cable is set to extend1.2940

“UK preliminary PMI data was constructive. The July data advanced on June’s readings and were close to, or slightly better than, expectations. The data suggest steady, if uninspiring, growth momentum and leaves the debate over the near-term BoE policy outlook unresolved (11-12bps of cuts priced in for August 1).”

“The GBP is attracting some clear support after easing briefly under 1.29 earlier. Intraday trading patterns are turning more positive and suggest the squeeze higher in Cable may extend. Gains above 1.2940 would lift the GBP back towards 1.30.”