Expect the GBP/USD to remain a strong performer - Scotiabank

Analysts at Scotiabank noted that Sterling seasonality is positive in Apr.

Key Quotes:

"UK Data showed slightly better than expected momentum in the manufacturing sector in Mar, with the PMI index holding at 55.1, little changed form 55.0 in Feb but better than the slight deceleration to 54.7 expected."

"Sterling seasonality is positive in Apr, reflecting the typical decline in the USD that grips the markets around this time of the year as well as UK-centric factors such as financial inflows at the start of the financial year. "

"The GBP’s relatively strong performance in Q1 may soften the seasonal impact this year but we expect the pound to remain a strong performer in the coming weeks and months as Brexit fears recede for now and markets consider the risk of an adjustment in BoE policy in May."