Pound Sterling (GBP) is modestly higher against the US Dollar (USD), showing early signs of stabilization after retreating from its early January peak, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

GBP finds footing after January pullback

"The pound is up 0.2% vs. the USD and also appears to be attempting stabilization following a pullback from its early January high."

"There have not been any major domestic releases however the calendar is heavy with jobs data scheduled for Tuesday, CPI scheduled for Wednesday, public finance figures on Thursday, and retail sales and preliminary PMI’s on Friday."

"Domestic rate expectations have shown signs of recovery following their pullback and the upcoming data will be key heading into next BoE meeting scheduled for February 5th. Rate expectations remain dovish but have been fading the extent of cuts priced in for this year."