GBP Trading Outlook
The Sterling (GBP) was able to regain ground against the Euro but was under pressure against the resurgent Dollar. Cable found support at 1.6360 after first testing 1.6470. The Bank of England held at 0.5% as widely forecast. Overall the GBP/USD traded with a low of 1.6356 and a high of 1.6468 before closing the day at 1.6360 in the New York session. Looking ahead, April Industrial Output forecast at 0.1% vs. 0.3% previously.
The Sterling (GBP) was able to rebound from weakness in Europe to gain against the USD and EURO during the US session. A lot of talk from rating agencies was the main catalyst for the sharp fall at the start of the European session but the market discounted this as a very small risk. Overall the GBP/USD traded with a low of 1.6346 and a high of 1.6449 before closing the day at 1.6405 in the New York session. Looking ahead, BOE Rate announcement forecast to remain at 0.5%.
The Sterling (GBP) was very calm but pressured to the downside with the general risk off mood in the market. EUR/GBP tried to extend gains but failed to push much further into the 0.8900 region. The outlook is mixed to negative given the tough austerity measures announced by the government. Overall the GBP/USD traded with a low of 1.6284 and a high of 1.6438 before closing the day at 1.6430 in the New York session.
The Sterling (GBP) was very calm but pressured to the downside with the general risk off mood in the market. EUR/GBP tried to extend gains but failed to push much further into the 0.8900 region. The outlook is mixed to negative given the tough austerity measures announced by the government. Overall the GBP/USD traded with a low of 1.6284 and a high of 1.6438 before closing the day at 1.6430 in the New York session.
The Sterling (GBP) bounced with the Euro but underperformed with EUR/GBP pushed higher. The market is still not eager to buy the Pound with the UK economy under a cloud of stagflation. The Possibility of high inflation and low growth is a toxic mix that will make it hard for the Bank of England to raise rates. Overall the GBP/USD traded with a low of 1.6284 and a high of 1.6438 before closing the day at 1.6430 in the New York session.
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