GBP/USD: watching for PM's speech tomorrow - Scotiabank

Analysts at Scotiabank explained that GBP is quiet, testing fresh marginal three-week lows while consolidating within a relatively tight range just below Monday’s close. 

Key Quotes:

"Domestic developments remain in focus as market participants assess political risks into PM May’s speech on Wednesday."

"The construction PMI disappointed and unexpectedly fell below 50 into contractionary territory."

"Yield spreads are showing signs of stabilization and domestic rate expectations continue to firm. OIS are pricing an 85% chance of a BoE hike before the end of the year."