GBP Trading Outlook
The Sterling (GBP) the BOE meeting was a non-event with rates kept at 0.5% and the QE left unchanged. The GBP/USD struggled with the bulls and bears in a fierce fight but the EUR/USD downside is likely to pull the Cable lower as EUR/GBP has fallen too fast. Looking ahead, April German CPI forecast at 0.1%. April UK PPI forecast at -1%.
The Sterling (GBP) the GBP/USD fell through 1.6100 in Europe but rebounded at the first sign of stabilization with the buyers still in control given the Euro situation. The EUR/GBP nearly broke 0.8000 at the height of Greek and Spanish banking concerns but so far the level has held intact. Looking ahead, March Industrial Output forecast at -0.3% vs. 0.4% previously. Also ahead, Bank of England Rate announcement forecast unchanged at 0.5%.
The Sterling (GBP) The GBP/USD was sold down to the 1.6125 on the risk aversion but EUR/GBP selling is supporting and the downside is seen as limited compared to other risk sensitive majors. Looking ahead, March Trade Balance forecast 13.5bn vs. 13.6bn previously.
The Sterling (GBP) the GBP/USD was stronger than most even throughout the stock plunge on Friday and was able to retest 1.6200. The EUR/GBP is hovering near 0.8060 and is in striking distance of the 0.8000 in coming sessions if more Euro negativity enters the market. Looking ahead, ECB President Draghi speaks.
The Sterling (GBP) the GBP/USD was not immune to the EUR/USD selling but was supported as the EUR/GBP slumped. The EUR/GBP is below 0.8100 and is going towards 0.8100. Looking ahead, March German Industrials Orders forecast at 0.5% vs. 0.3% previously.
Go to The Sterling (GBP) Archive