GBP weak and underperforming most G10 currencies – Scotiabank

The Pound Sterling (GBP) is weak, down 0.2% against the US Dollar (USD) and underperforming all of the G10 currencies with the exception of NOK, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Focus on sentiment and fiscal/budget ahead of Nov 26

"There have been no major domestic data releases and UK-US yield spreads remain steady. Sentiment appears to be dominating as we note the renewed decline in 3M risk reversals, building a greater premium for protection against GBP weakness."

"The UK fiscal situation remains a primary concern for market participants, as Chancellor Reeves faces pressure to expand the UK’s fiscal buffer ahead of the Nov 26 budget release."