GBP Trading Outlook (16-11-2010)

The Sterling (GBP) very weak November UK house Prices down -3.2% vs. +3.1% m/m previously added to the downside pressure already existing from the slumping Euro. GBP/JPY is showing strength holding above Y133 as the USD/JPY begins to trek higher. Overall the GBP/USD traded with a low of 1.6038 and a high of 1.6157 before closing the day at 1.6045 in the New York session. Looking ahead, October Retail Price Index forecast at 0.3% vs. 0.4% previously m/m. October CPI is forecast at 3.1% y/y.

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