GBP Trading Outlook
The Sterling (GBP) was rescued by the sharp EUR/USD rally to climb away from the 1.6000 support. GBP/JPY buying also supported and we moved above 1.6150 in the US session. The BOE held at 0.5% and kept QE at 375bn as widely expected. Looking ahead, UK November Industrial Orders forecast 0.8% vs. -0.8% m/m.
The Sterling (GBP) is under heavy selling pressure lately as trader’s price in more easing form the BOE in 2013. The BOE meet tonight and are unlikely to move on rates or the size of their Asset purchase program at this meeting. Support was found at 1.6000 overnight but the rebound has been weak so far. Looking ahead, ECB Rate meeting forecast to hold at 0.75%. BOE Rate meeting forecast to hold at 0.5%.
The Sterling (GBP) Cable was on the back foot with the Euro falling down below 1.6050 before support was found and we stabilized just above the support. GBP/JPY selling added to weight overnight as we broke below Y140. Looking ahead, UK November Trade Balance forecast at 9bn vs. 9.5bn previously. November Germany Industrial Output forecast 1% vs. -2.6% previously.
The Sterling (GBP) GBP/USD took advantage of the Dollar weakness grinding back above 1.6100 and is well positioned to test higher now the market has stabilized. December Halifax gained 1.3% vs. 0% forecast m/m. Looking ahead, German November Trade Balance forecast at 15 vs. 15.2bn previously. November Industrial Orders forecast at -1.4% vs. 3.9% previously
The Sterling (GBP) underperformed the Euro with the EUR/GBP grinding higher but the general theme was the same with selling early in the day and a relief rally late in the US session. The outlook for 2013 will be greatly affected by the new BOE Governor Carney from Canada and whether the market is ready to test the US FED on its monetary policy outlook. Looking ahead, December Halifax House Price forecast at 0 vs. 1 previously.
Go to The Sterling (GBP) Archive