GBP struggles to hold gains around 1.26 – Scotiabank

The Pound Sterling (GBP) is a relatively weak performer on the session vs US Dollar (USD), down a little more than 0.2% on the generally strong USD, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP struggles to hold gains despite strong wage, jobs data

"UK data showed stronger-than-expected growth in wages (6.0% for average weekly earnings in the 3 months through December) while employment growth was stronger than expected. The data pared market expectations for BoE easing moving forward, endorsing messaging from the BoE leadership that rate cuts will proceed cautiously."

"GBP's' solid rise last week has struggled to extend through the low 1.26—where the 38.2% retracement of the 1.34/1.21 drop seen between September and January sits (1.2610)."

"GBP has spent the past two trading sessions pivoting around the 1.26 point, leaving GBP gains looking stalled. Loss of support at 1.2580 will drive the pound back to 1.2525/30."