GBP Trading Outlook
The Sterling (GBP) fresh selling emerged overnight with GBP/USD breaking below 1.5800 even as it’s neighbor in the EUR/USD rallied in the US session. The EUR/GBP cross highlighted the different direction hitting a multimonth high above 0.8450. GBP/JPY was able to rally to Y143 but is the weakest. Looking ahead, Preliminary Q4 GDP forecast at -0.1% vs. 0.9% previously.
The Sterling (GBP) is under pressure being sold on rallies and in danger of further losses on most of the GBP crosses with GBP/AUD at 1.5000 overnight. Sentiment towards the Pound is souring because of the MPC signaled intent to expand their QE if the economy continues to stall. The MPC minutes overnight confirmed this with 1 member actually voting for an expansion at January’s meeting. Governor King also commented on the relative strength of the sterling. Looking ahead, January MPC minutes forecast at 9-0 hold vote. Also November Unemployment Rate forecast at 7.8% unchanged from the previously month.
The Sterling (GBP) while the GBP generally tracked the EUR/USD lower and then back near opening levels during the US session. At the close however we saw some selling on the back of BOE Governor King’s comments that BOE QE is an important tool for helping the UK economy. GBP/JPY has found tentative support at the Y140 level but it is too early to call the correction complete. Looking ahead, January MPC minutes forecast at 9-0 hold vote. Also November Unemployment Rate forecast at 7.8% unchanged from the previously month.
The Sterling (GBP) continued to trend lower in light trade with the market remaining sour of the British pound. EUR/GBP broke above 0.8400 as the EUR/USD remained strong. Looking ahead, German ZEW economic forecast sentiment 12 vs. 6.9 previously. Eurozone EconFin meeting.
The Sterling (GBP) broke 1.6000 finally and crashed through to 1.5850 on the back on growing concerns that the UK will distance itself from the EU. PM Cameron has a critical speech planned on the subject this week and traders will be carefully digested his comments to gauge the conservatives long term European plans. Looking ahead, German PPI forecast at 0.0% vs. -0.1% previously.
Go to The Sterling (GBP) Archive