The British pound (GBP) is entering Monday’s North American session on a firmer footing, showing modest support and a slightly bullish bias, according to Scotiabank’s chief FX strategists Shaun Osborne and Eric Theoret.
Markets signal confidence in cabinet shuffle
This week’s U.K. economic calendar is front-loaded toward the end of the week, with attention focused on Friday’s trade and industrial production figures. Analysts note that relative central bank policy expectations remain supportive, while widening yield spreads also underpin sterling. Political developments remain in the spotlight following Prime Minister Starmer’s recent cabinet reshuffle.
Options market points to improving sentiment
Scotiabank highlights that markets appear to be endorsing the political shift, with risk reversals in the options market showing signs of recovery after a sharp bearish turn in recent weeks.
Technical outlook stays muted
From a technical perspective, GBP/USD continues to trade within a broadly flat range since mid-August. The relative strength index (RSI) signals a marginally bullish tilt, though movement remains capped between the lower 1.33s and the 1.36 handle. Scotiabank sees a near-term trading range between 1.3480 and 1.3580.
