GBP/USD: not paying attention to positive news - Scotiabank

Analysts at Scotiabank noted that the better than expected Q3 GDP (+0.5% q/q versus +0.3% expected) suggests the UK economy held up much better than expected immediately following the Brexit decision.

Key Quotes:

"A sharp improvement in the CBI’s retail survey for October (21, from –2) indicates that consumption trends remain robust into the end of the year."

"Growth data are strong enough to keep the BoE sidelined into year-end."

"The GBP has not been able to take too much advantage of the positive news, however, and we remain bearish on the longer-term outlook for the GBP as the full effect of Brexit has yet to be felt."