GBP Trading Outlook
The Sterling (GBP) the GBP/USD rallied but at a slower pace than most majors with EUR/GBP buying weighing on the Pound. The BOE held rates at 0.5% and kept Asset Purchase Program at 325bn as widely expected. The outlook will depend on the stock market and general risk appetite but has a good chance to test higher with the mood improving dramatically overnight. Looking ahead, UK January Industrial Output forecast at 0.3% vs. 0.5% previously. Also German Trade Balance forecast at 13.5bn vs. 13.9bn previously.
The Sterling (GBP) the GBP/USD moved higher but only gently with the BOE today with also an announcement on the currency Asset purchase program. The EUR/GBP is still very quiet at 0.8350 and the GBP/AUD recent rally against the struggling Aussie failed ahead of 1.5000. Looking ahead, ECB rate meeting forecast to hold at 1.0%. BOE Rate Meeting Forecast to hold at 0.5%.
The Sterling (GBP) fell in sympathy with the Euro with the EUR/GBP cross remaining dead flat suggesting traders happy to let the Euro lead up to the major event risk tomorrow. Halifax House Prices fell -0.5% in February for a -1.9% annual race. Looking ahead, German Industrial Orders forecast at 0.5% vs. 1.7% previously.
The Sterling (GBP) dipped into European session but was supported under 1.5800 on two attempts before rallying above 1.58500. The EUR/GBP has been under pressure and the GBP buying through this cross has been a constant source of support in last week. The market is looking to resume its uptrend with or without the Euro and so the EUR/GBP is being closely watched for signs of GBP independence. Looking ahead, EU Q4 GDP forecast at -0.3% Q/Q. Also, UK Halifax House Prices are forecast at 0.3% vs. 0.6% previously.
The Sterling (GBP) even the resurgent GBP/USD could not avoid the selloff seen across most markets on Friday with the topside attempts abandoned and we saw a pullback to 1.5850. Most still look for a 1.6000 attempt but the EUR/USD is struggling in last two days.
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