GBP Trading Outlook
The Sterling (GBP) was higher but only marginally gaining to 1.5950 on the major. More substantial gains were seen on the GBP/JPY which moved above Y125 in strong trade. Looking ahead, July German Trade Balance at 15.5bn vs. 16.2bn previously. Also released German Industrial Output forecast at 0 vs. -0.9% m/m. August UK PPI Input forecast at 1.7% vs. 1.3% m/m.
The Sterling (GBP) the GBP/USD broke and closed above 1.5900 and is looking strong well positioned to test the major 1.6000 level if stocks react positively to the BOE/ECB double tonight. Looking ahead, Bank of England Meeting forecast to hold at 0.5% and keep asset purchase program at 375bn. ECB Rate meeting forecast to hold at 0.75%. Focus on ECB President Draghi Speech at 4:30GMT.
The Sterling (GBP) the weakness of the Euro spread to the GBP and we saw a pullback from 1.5900 to 1.5850. Helping support was the August PMI services which jumped to 53.7 vs. 51.0 previously. This combined with a stellar manufacturing survey on Monday have helped improve the outlook and sentiment toward the Pound. Looking ahead, July Retail Sales forecast at -1.5% vs. -1.2% y/y.
The Sterling (GBP) the GBP/USD rubbed against the 1.5900 level for most of the day overnight with risk on trade and positive sentiment. The manufacturing PMI from the UK overnight was very strong at 49.5 vs. 46 forecast. Looking ahead, Switzerland Q2 GDP forecast at 0.2% vs. 0.7% previously. Also EU July PPI Output forecast at 0.2% vs. -0.5%.
The Sterling (GBP) the GBP/USD broadly tracked the Euro on Friday up in the US session and holding on to these gains with stock markets remaining elevated. Looking ahead, August UK PMI Manufacturing forecast at 46 vs. 45.4 previously.
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