GBP Trading Outlook (15-12-2010)

The Sterling (GBP) Strong CPI at 0.4% m/m in November pushed yearly figures to 3.3% and supported Cable as it tested 1.5900 in Early Europe. The mood changed dramatically however as EUR/GBP began to rally and USD found strength with market falling sharply back below 1.5800. Overall the GBP/USD traded with a low of 1.5737 and a high of 1.5914 before closing the day at 1.5760 in the New York session. Looking ahead, November Claimant Count is forecast at -3k vs. -3.7k previously.

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