GBP Trading Outlook (17-11-2010)
The Sterling (GBP) October CPI came in stronger than expect at 3.2% y/y forcing BOE king to send another letter to the government. The upside was limited however and the market crash through 1.6000 on later comments from King that the BOE could expand QE if it wanted to. Overall the GBP/USD traded with a low of 1.5837 and a high of 1.6090 before closing the day at 1.5885 in the New York session. Looking ahead, October Claimant Count is forecast at 5k vs. 5.3k previously.
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