The Pound Sterling (GBP) is trading lower on the session, tracking the broader tone of the US Dollar (USD), Scotiabank’s Chief FX Strategist Shaun Osborne notes.

Rrisk of easing further on the break of 1.3313 support

“UK Manufacturing PMI was left unchanged at 51.5 in September. BoE policymaker Greene (a dissenter when the MPC voted to cut rates in August) commented that a rebound in consumer demand could lift inflation again and noted that while prices are ‘moving in the right direction’, it was questionable how quickly progress was being made.”

“Sterling gains have stalled in the low 1.34 area. A potential double top at 1.3430 warrants attention on the short-term chart. Loss of support at 1.3313 will open up the downside a little more for Cable and target a drop in the pound to 1.3195/00.”