GBP/USD maintains the bearish bias - Scotiabank

FXStreet (Córdoba) - GBP is weak and underperforming, trading with a bearish bias in the absence of domestic data and according to Eric Theoret, CFA, CMT FX Strategist at Scotiabank sentiment should continue to weigh on GBP as market participants maintain their focus on Brexit risk heading into a rumored June 23 referendum.

Key Quotes

“GBP is trading in tandem with short term yield spreads, and risk reversals suggest a moderation in demand for downside protection”.

“Near term risk lies with the Fed policy decision at 2pm EST and potential for GBP gains on the back of a softening in the Fed’s tone.”