GBP/USD: on the defensive post pood data and political climate - Scotiabank

Analysts at Scotiabank explained that GBP/USD relinquished most of its early European session gains in response to the release of weaker than expected manufacturing PMI figures.

Key Quotes:

"(55.3 vs. 56.5 exp. & 56.2 prev.). Domestic politics remain a critical near-term risk as market participants assess uncertainty surrounding PM May’s leadership. Local media are reporting rumors of possible cabinet resignations. Fundamentals remain constructive however, and the Bank of England may dominate into next week’s (Feb 8) policy decision and Quarterly Inflation Report publication. OIS are pricing 37bpts of tightening by December."