GBP Trading Outlook
The Sterling (GBP) the weak USD has sent the GBP/USD to 1.6200 and we are looking for even more gains as the sentiment remains strong. The EUR/GBP is continuing to grind higher lately as the Euro recovery extends. The UK has its own QE program but with inflation higher than expected BOE member Broadbent see less scope for action. Looking ahead, August EU Inflation forecast at 0 vs. 0.6% previously
The Sterling (GBP) the Pound was supported by the EUR/USD rally and strong local data. August Unemployment claims fell 15k and is a positive sign for the job sector. The Unemployment rate increased however to 8.1% as more people returned to looking for a job. Looking ahead, Q3 Swiss Libor Rate forecast at 0.13%.
The Sterling (GBP) GBP/USD lifted off the 1.6000 levels and rallied to 1.6080 tracking EUR/USD higher. UK data has been improving of late and yesterday’s Trade balance was no exception with the July figure dropping to -7.1bn vs. -9bn. Looking ahead, August German CPI forecast at 0.3% m/m. Also July EU Industrial Production is forecast at 0 vs. -0.6% previously. German Constitutional Court Decision.
The Sterling (GBP) reversed back below 1.6000 as the lofty figure proved too much for the Pound given so many risk events on the horizon. The trend is still higher however so support is expected to be found shortly at either 1.5960 or 1.5920. GBP/JPY is struggling since Friday’s NFP and is hurting the outlook for the major. Looking ahead, July UK Trade Balance forecast at -8.9bn vs. -10.1bn previously.
The Sterling (GBP) the GBP/USD broke above 1.6000 but failed to keep up with the EUR/USD which meant the EUR/GBP leapt to 0.8000. The Pound has been enjoying a nice uptrend recently and we could see this continue as long as risk appetite remains upbeat. Looking ahead, September EU Sentix forecast at -30.7 vs. 30.3 previously
Go to The Sterling (GBP) Archive