According to Scotiabank’s Analyst Team, the British Pound (Sterling) has been a moderate outperformer against most core major currencies, with the exception of the New Zealand Dollar, during the current session. This outperformance is attributed to broader risk appetite in the market rather than any domestic UK economic data, as there were no UK data releases on the day in question [1].
Scotiabank highlights that the gains in Sterling appear to be flow-driven, reflecting investor positioning and sentiment rather than fundamental news. The analysts also point to ongoing political uncertainty, specifically referencing the upcoming June 18 Makerfield by-election and the potential for a leadership rival to emerge against Prime Minister Starmer, as factors that remain close to the surface for GBP investors [1].
From a technical perspective, Scotiabank observes that intraday gains from the previous day's low just above 1.33 suggest a minor low or reversal has been established for GBP/USD (Cable). The analysts indicate that a break above the 1.3415 level would add to short-term bullish momentum, potentially opening the way for further gains toward 1.3475 [1].
No market reactions or analyst opinions beyond Scotiabank’s technical outlook and commentary on risk sentiment were discussed in the article [1].
CONCLUSION
Sterling’s recent gains are attributed to positive risk sentiment and flow-driven factors, with technical indicators suggesting potential for further upside if key resistance levels are breached. However, political uncertainty related to the Makerfield by-election and UK leadership remains a concern for investors.