GBP/USD: data review ahead of GDP Q3 next week - Scotiabank

Analysts at Scotiabank explained fundamentals for sterling.

Key Quotes:

"U.K. retail sales stagnated in September, disappointing market expectations of a modest bounce after similarly sluggish August (upwardly revised to -0.1% m/m)."

"July data was very robust, however, so consumers may simply be taking a break (weather-related factors were also attributed to the September result)."

"Strength in consumption early in Q3 should still provide a hefty contribution to growth for the quarter (Q3 GDP next week), our UK rate strategist expects and we look for a decent 0.4% q/q advance in growth which might be good enough to temper near-term BoE easing expectations."