GBP Trading Outlook
The Sterling (GBP) the GBP/USD was smacked lower after Q2 GBP fell quicker than forecast at -0.7% vs. -0.3% forecast by economists. Bad weather was blamed but it is still very negative with the market selling GBP aggressively across the board. The EUR/GBP helped the EUR/USD rally and the important cross finished the day at 0.7840. GBP/USD fell to 1.5460 but had hit a day high of 1.5550 as the EUR/USD moved higher. Looking ahead, German GFK Consumer Sentiment is forecast at 5.8 in August.
The Sterling (GBP) the GBP/USD remained very calm while the rest of the market swirled around it sticking to the 1.5500 level. EUR/GBP fell back below 0.7800 and found support at 0.7775. Looking ahead, July German IFO forecast at 104.7 vs. 105.3. UK Q2 Preliminary GDP forecast at -0.2% vs. -0.3% previously.
The Sterling (GBP) the GBP/USD was dragged lower to 1.5500 in the risk off environment with EUR/GBP actually rallying and the Pound underperforming the rest of the market. Traders believe this was just a technical correction and that the EUR/GBP should continue as the European Debt Crisis rolls on. Looking ahead, BBA Mortgage Approvals forecast at 31.4k vs. 30.2k previously. Also EU July Flash PMI forecast at 45.3 vs. 45.1 previously. EU July Flash Services PMI is forecast at 47.3 vs. 47.1 previously.
The Sterling (GBP) the EUR/GBP continued to fall under 0.7800 and helped to limit the losses the GBP/USD which fell from 1.5700 to 1.5600. The UK is looking like a safer place for investors to store their capital while the slow burning European crisis continues. Looking ahead, focus on the European Debt Crisis and Spanish and Italian Yields will continue. No major economic data released.
Go to The Sterling (GBP) Archive





