GBP Trading Outlook (09-12-2010)

The Sterling (GBP) bounced aggressively off 1.5700 to lead the recovery in the US session. GBP/JPY buying and EUR/GBP selling is adding to the Cable support. December CBI Orders improved to -3 vs. -15 previously. Overall the GBP/USD traded with a low of 1.5666 and a high of 1.5839 before closing the day at 1.5810 in the New York session. Looking ahead, BOE Rate Announcement forecast at 0.5% and no change in Asset Purchase program.

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