GBP Trading Outlook
The Sterling (GBP) weak Retail sales in February at -0.4% vs. 0.8% forecast put a dampener from the start of the European session with GBP/USD falling sharply under 1.5800. GBP/JPY has fallen from Y133 to Y130 in the last 48 hours. The uptrend is still in place but starting to come under pressure and a break below Y130 would damage prospects.
The Sterling (GBP) the GBP/USD reversed in Europe as well after a surprise 7-2 MPC vote with two members wanting even more QE at the last meeting. The EUR/GBP was unaffected and demonstrated the resilience of the Pound in recent sessions and GBP/AUD extended gains to test 1.5200. Looking ahead, February UK Retail Sales forecast at -0.4% vs. 0.9% previously. Also ECB President Draghi speaks.
The Sterling (GBP) the GBP/USD remains stable and supported but was unable to break above the 1.5900 and the EUR/GBP grinded higher above 0.8350. The GBP/AUD break above the major 1.5000 level saw a sharp move to 1.5150 and has heaps of space to move higher. Looking ahead, UK MPC minutes from March meeting forecast at 9-0 hold.
The Sterling (GBP) the GBP/USD tested 1.5900 but fell back in the US session as EUR/GBP rebounded off the 0.8300 level and is threatening 0.8350 resistance ahead of key CPI data today from the UK. Looking ahead, February CPI forecast at 0.5% vs. -0.5% previously. February March CBI orders forecast at -6 vs. -3 previously.
The Sterling (GBP) kicked above 1.5700 shrugging of the negative outlook to its rating from Fitch. The EUR/GBP is holding above 0.8300 comfortably and the market seems content to trade the range for now 0.8300-0.8400. Looking ahead, January Trade Balance previously at 9.7bn
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