GBP/USD: Losses may extend to the low/mid-1.22s – Scotiabank

GBP/USD slips back after peaking near 200-DMA. Economists at Scotiabank analyze the pair’s outlook.

More conviction around the idea of the BoE easing policy towards the middle of 2024

Markets are pricing in a bit more conviction around the idea of the BoE easing policy towards the middle of 2024 following BoE Economist Pill’s remarks on Monday which appeared to endorse that idea.

Sterling’s moves are largely tracking the EUR’s drop back from Monday’s high but the GBP’s daily chart looks a little more negative on the face of it after spot stalled at the 200-DMA on Monday (1.2435).

Corrective GBP losses may extend to the low/mid-1.22s in the near term.