GBP Trading Outlook
The Sterling (GBP) Heavy EUR/GBP selling help slow the GBP/USD losses overnight where the market found support at 1.5480 before stabilizing at the figure. GBP/JPY selling has accelerated however and so the major is likely to continue to be under pressure with a significant change in market mood. Looking ahead, January Retail Sales forecast at 0.5% vs. -0.1% previously. Also December European Trade Balance forecast at 13bn vs. 13.7bn.
The Sterling (GBP) the GBP/USD was crushed lower by the BOE Governor Kings speech overnight. He commented that the limits of the monetary policy (cutting rates) leaves the door open for further stimulus (QE) in light of inflation. Cable hit 1.5550 throughout his speech and has continued to fall with little bounce to 1.5530 so far in Asia. Looking ahead, Q4 GDP Germany forecast at -0.5% vs. 0.2%. EU GDP forecast at -0.4% vs. -0.1% previously.
The Sterling (GBP) GBP/USD found support under 1.5600 and surged on GBP/JPY buying and EUR/GBP selling in the US session. The outlook is negative as major supports have been broken and the rallies have been sold into lately. Only a move above 1.5800 would stem the negativity towards Cable in the medium term. Looking ahead, BOE Governor King speaks and BOE Inflation Report released.
The Sterling (GBP) the GBP/USD returned to its downtrend falling sharply overnight from 1.5800 to 1.5660. The recent buying post carney has faded and we will be looking to economic data to see if the recent slip into recessionary numbers continues. EUR/GBP reversed higher towards breaking back above 0.8500. Looking ahead, January CPI forecast at 2.7% unchanged from December y/y.
Go to The Sterling (GBP) Archive