GBP Trading Outlook
The Sterling (GBP) kicked above 1.5700 shrugging of the negative outlook to its rating from Fitch. The EUR/GBP is holding above 0.8300 comfortably and the market seems content to trade the range for now 0.8300-0.8400. Looking ahead, January Trade Balance previously at 9.7bn
The Sterling (GBP) the 1.5650 level held on GBP/USD and this helped the crosses gain against the Euro and the AUD. The GBP/AUD is starting to reverse after hitting all-time lows at 1.4500 with the market testing 1.5000 overnight. Other news for the Pound was the negative watch of UK’s AAA rating by Fitch with the rating agency putting their chance of a downgrade at over 50% in the next 2 years. Looking ahead, Swiss Interest Rate decision forecast to remain at 0.25% with focus on the 1.2000 EUR/CHF floor.
The Sterling (GBP) a weak performance overnight as the major tested 1.5600 and failed to track the Euro rebound and suffered on the Crosses. GBP/JPY is a safer way of buying the Pound with Yen weakness countering the recent Cable selloff. Looking ahead, March German ZEW survey forecast at 42.5 vs. 40.5 previously. Also ECB President Draghi speaks.
The Sterling (GBP) the GBP/USD tracked the Euro lower with buyers losing faith in the recent rally and instead now searching for support as we approach 1.5650. The outlook depend on whether this recent run of USD strength is a blip or start of something longer term as stock markets are holding up rather well and usually the GBP would be much better in such an environment. Looking ahead, German WPI forecast at 1 vs. 1.2% previously.
Go to The Sterling (GBP) Archive



