GBP Trading Outlook
The Sterling (GBP) the selling continued overnight with GBP/JPY continuing to crash down towards Y120 in risk off trade. The GBP/USD broke under 1.5400 and the GBP was sold faster than even the beleaguered Euro with EUR/GBP climbing back above 0.8000. Looking ahead, May UK PMI forecast at 49.8 vs. 50.5 previously. Also ahead, April Unemployment forecast at 11% vs. 10.9% previously.
The Sterling (GBP) the heavy selling on the EUR/USD transferred over to the GBP/USD which also fell heavily down below 1.5500 and looking weak technically. The EUR/GBP is remaining near the 0.8000 level with the big figure acting like a magnet in recent trading sessions. Looking ahead, April German Retail Sales forecast at 0.0% vs. 0.8% previously. May German Unemployment change is forecast at -5k vs. 19k previously.
The Sterling (GBP) the risk off mood led to Pound selling as well with the cable moving from 1.5700 down to lower 1.5600 levels in the US session. The outlook is for further losses but EUR/GBP selling is supporting. May CBI Trade data was strong at 21 vs. -7 previously. Looking ahead, April UK Mortgage approvals forecast at 50.1 vs. 49.9 previously. Also ahead ECB President Draghi speaks.
The Sterling (GBP) the GBP/USD was mixed opening up strong and testing above 1.5700 but the risk off environment in thin trade later in the US was enough to drag it back towards 1.5680. Looking ahead, May German Core CPI forecast at -0.1% vs. 0.2% previously. Also May UK CBI distributive Trades forecast at -7 vs. -6 previously.
The Sterling (GBP) the GBP/USD found support at 1.5650 but is struggling to bounce off the Greece news as EUR/GBP is rebounding as well. The market is oversold on the short term and we could see a move back to 1.5800 if the sentiment improves. Looking ahead, Bank holiday in Europe but UK is open as normal.
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