The Pound Sterling (GBP) is a moderate outperformer on the session after dipping modestly in line with its peers in light trade overnight, Scotiabank's Chief FX Strategist Shaun Osborne notes. 

GBP is little changed on the day

"Sterling is being afforded a little protection from its relatively low trade exposure to the US amid the focus on tariffs while the market’s swift revision of BoE rate cut expectations following last week’s cut and apparent dovish tilt to the voting split is also providing some support. Market pricing for a follow-up cut in March has weakened significantly following BoE messaging that policy settings needed to remain restrictive." 

"Spot’s recovery from last week’s low settled around the 1.24 point at the end of last week and this area may remain an anchor for the GBP in the short run as markets try and determine a stronger sense of direction. Support is 1.2360. Resistance is 1.2490/00."