GBP Trading Outlook
The Sterling (GBP) was sold aggressively with US stocks as Google results were released by mistake early and badly missed forecasts. The risk sensitive Pound fell back below 1.6100 to 1.6040 and is stable in Asia so far. Earlier in the day we saw day highs above 1.6160 after September Retail Sales at 0.6% vs. 0.4% previously. Looking ahead, EU Economic Summit continues. Also September Germany PPI forecast 0.3% vs. 0.5% previously.
The Sterling (GBP) found resistance at 1.6180 overnight before easing back to 1.6140 be the close. The outlook is positive with strong global stock markets supporting. The MPC minutes showed a 9-0 vote as expected to leave things unchanged. Looking ahead, UK September Retail Sales forecast at 0.4% vs. -0.2% previously.
The Sterling (GBP) moved above 1.6100 and topped out at 1.6130 with the bulls back in control so far this week. The GBP/USD will follow the lead of the EUR/USD although EUR/GBP is grinding higher so perhaps the movements will be at slower pace. Looking ahead, September Claimant Count forecast at 0 vs. -15k previously. MPC minutes forecast at 9-0 for no change last meeting. Also October UK Unemployment Rate forecast at 8.1%.
The Sterling (GBP) the GBP/USD was quiet in a 50 pip range between 1.6030 and 1.6080. The Pound is following the lead of the Euro and will do well if EUR/USD breaks above 1.3000. Little economic data this week means the stock market will be the main source of movement. Looking ahead, October German ZEW Survey forecast at -15 vs. -18 previously.
The Sterling (GBP) found buyers under 1.6000 on Thursday and we closed with a small bounce towards 1.6050. Growing calls for further monetary stimulus (QE) from the BOE are undermining the outlook. Looking ahead, no economic data today.
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