GBP/USD: outperforming on domestic fundamentals - Scotiabank

GBP is strong, clearing 1.42, testing fresh post-Brexit highs, and outperforming all of the G10 currencies. The analysts at Scotiabank explained that the broader tone is dominating.

Key Quotes:

"Domestic fundamentals are delivering added support on the back of stronger than expected employment data (ex-bonus wages, 102K 3m/3m employment change), characterized by our U.K. strategist Alan Clarke as ‘STRONG’."

"The data have delivered modest support to BoE rate expectations, with OIS now pricing more than 50% chance of a 25bpt hike by June."

"A reminder that BoE Gov. Carney participates in a Davos panel on Friday."