GBP/USD: bearish ahead of considerable data - Scotiabank

Analysts at Scotiabank explained that they remain bearish on GBP/USD.

Key Quotes:

"We highlight the considerable amount of domestic data scheduled for release throughout the week, including Tuesday’s CPI, Wednesday’s employment, and Thursday’s retail sales. Investors are bearish GBP and have boosted their gross short CFTC positions to a fresh record."

"Sentiment has deteriorated for six consecutive weeks. The CFTC data provide an interesting contrast to signals in the options market, as the post-Brexit moderation in measures of implied volatility have provided for an impressive turn in risk reversals and decline in the premium for protection against downside risk. We look to continued weakness in GBP."