British Pound: Burnham policy hopes underpin Sterling against US Dollar – Scotiabank

FXStreetJul 17, 2026 3:52 PM

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Scotiabank’s Shaun Osborne and Eric Theoret notes GBP/USD is lower on the day and well off its one-year high reached on optimism that incoming PM Burnham will pursue market-friendly policies. Despite late-week slippage, that view remains. The new government is expected to allow new North Sea drilling and bring Thames Water back under public control, while trend oscillators stay bullish and analysts look for firm support near 1.34.

Political shift and technical support at 1.34

"Sterling is down on the day and well off the 1-year peak seen earlier this week around optimism that Burnham—who takes over as PM next week—will follow market friendly policies. Despite the pound’s late week slippage, that outlook appears to remain intact."

"The Burnham government looks poised to strike out in a different direction than Starmer’s. Reports suggest that he will permit new drilling permits for oil and gas in the North Sea (Labour under Starmer veered away from boosting North Sea energy) and will announce plans to take the troubled Thames Water utility back under public control (Starmer preferred a private sector solution). President Trump will like the “drill, baby drill” look to the new government, at least."

"Neutral/bullish—Solid gains in the GBP Wednesday have partially reversed over the balance of the week. Trend oscillators lean bullish on the intraday, daily and weekly DMIs which should help sustain the broader trend higher going forward."

"We look for firm support on dips to the 1.34 zone."

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

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

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