GBP holds weekly gains despite modest pullback – Scotiabank

Recent reports indicate that the GBP is slightly lower yet maintains most of its weekly gains. UK data shows mixed industrial performance and a widening trade deficit, influencing market sentiment. Specifically, industrial performance data fell short of expectations, which has acted as a damping factor for the GBP. Nevertheless, overall, GBP is maintaining a bullish trend since the beginning of the week, reflecting residual strength from last week’s performance. This movement shows relative strength compared to the dollar, leading market participants to focus on the future trajectory of the GBP. While the widening trade deficit is a negative indicator in the short term, its long-term implications for the overall economy might be limited.