Scotiabank: UK Fiscal Concerns Overblown, End-2025 GBP/USD Target 1.40

  • After hitting 44-month highs close to 1.3800 on July 1st, the Pound to Dollar (GBP/USD) exchange rate has retreated to test support near 1.3600. Scotiabank notes underlying fiscal risks, but considers that recent turbulence was just a blip and that confidence will be maintained as long as Chancellor Reeves remains in office.