Scotiabank’s Analyst Team notes Sterling is a moderate outperformer versus core majors, supported by broader risk appetite rather than domestic data. They highlight ongoing political uncertainty around the June 18 Makerfield by-election but see short-term technicals turning neutral to bullish, with a break above 1.3415 expected to open further gains toward 1.3475 in GBP/USD.

Sterling supported by risk sentiment

"Sterling is a relatively firm performer on the session so far, gaining versus most of its core major peers (ex NZD) as riskier FX outperforms."

"There were no UK data reports today so gains appear purely flow driven."

"Political uncertainty remains close to the surface for the GBP as investors monitor developments around the June 18th Makerfield by-election and the potential election of a leadership rival for PM Starmer."

"Neutral/bullish—Intraday gains from yesterday’s low just above 1.33 also suggest a minor low/reversal has been established for Cable."

"Gains through 1.3415 would add to short-term momentum and point to the pound gaining towards 1.3475."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)