Pound Sterling (GBP) is moderately firmer but, in the absence of any major news at home, the pound’s performance reflects broader USD weakness more than anything, Scotiabank's Chief FX Strategist Shaun Osborne notes.

GBP is firmer on the day

"Cable gains have extended through the low 1.27s to reach a new high for the current move up, however, suggesting decent momentum is developing behind the gains."

"GBP gains are extending through the low 1.27s to the highest since early December. Sterling gains since the start of the year have developed solid bullish momentum and look set to push on towards 1.28 (200- day MA at 1.2786). Support is 1.2715 and 1.2675/80."