GBP Trading Outlook
The Sterling (GBP) was muted and left behind in the risk on rally yesterday with the EUR/GBP short covering keeping the GBP/USD at the 1.5300 level. The BOE held at 0.5% and kept the Asset purchase program at 275BN as widely expected. The market is cautious to get long in the GBP/USD when the Euro and AUD is providing a much safer short term option in recent trading sessions. Looking ahead, December PPI forecast at 0% vs. 0.2% previously m/m.
The Sterling (GBP) the GBP/USD was the weakest currency in the market overnight with weak November Trade Balance data the catalyst for a move towards 1.5300. The EUR/GBP took advantage of this to move up to 0.8300 in a rare rally for the cross which has been in a downtrend for the past two months. The BOE meeting tonight is expected to be a non-event. Looking ahead, BOE forecast to hold at 0.5%. If no change then there is not statement or press conference.
The Sterling (GBP) the GBP/USD tested 1.5500 in Europe but failed to break the big figure and consolidated below for the rest of the day. The market has traded in this range for many days now and is primed to break out in fresh direction as the trading year heats up. Strong stock markets suggest a move to the 1.5700 whilst a Greece debt deal failure opens up 1.5200 and 1.5000.
The Sterling (GBP) grinded higher throughout the day lifting off 1.5400 and closing at highs near 1.5460. The outlook is linked with EUR/USD and requires confidence the worst is behind us for a sustained rally. EUR/GBP is receiving a lot of attention as it pivots the 0.8250.
The Sterling (GBP) UK House Prices fell -0.9% in December according to Halifax and shows that the UK housing market is continued to decline. The GBP/USD tracked the Euro lower to 1.5400 and is struggling to hold gains lately. EUR/GBP is still a source of support with the grind lower continuing and 0.8250 broken in Early Asian Trade Monday.
Go to The Sterling (GBP) Archive