GBP Trading Outlook
The Sterling (GBP) the GBP/USD was under mild pressure for most of the day as GBP selling came through on the EUR/GBP cross. The market is still in a wait and see mode as we approach so many risk events on the weekend. Range trading is expected until then. Looking ahead, May EU Inflation forecast at -0.2% vs. 0.5% previously.
The Sterling (GBP) weak economic data delayed the GBP/USD rally in Europe but once the market got above 1.5520 we saw quick gains to 1.5580. EUR/GBP is pressing down towards 0.8000 once again and this could be a major level in play in coming days. BOE Member Tucker talked of doing more in the tight credit conditions to help lenders. Looking ahead, May German CPI is forecast at -0.2% vs. -0.2% previously. Also April Industrial Production is forecast at -1% vs. -0.3% previously.
The Sterling (GBP) the GBP/USD followed the EUR/USD lower but was able to make headway on the EUR/GBP which fell sharply to 0.8050. The outlook is not good for the cable with market already selling on rallies and the proximity of the EU means any major event will affect the UK directly. Looking ahead, April Industrial Output forecast at 0.1% vs. -0.3% previously
The Sterling (GBP) the GBP/USD is soaring with the rest of the market on Monday playing catch-up with other majors as traders have been cautious going long after so much selling in recent weeks. The EUR/GBP is hampering gains with the important cross moving to 0.8160 vs. below 0.8100 last week. Looking ahead, no economic data today.
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