GBP Trading Outlook (12-04-2011)

The Sterling (GBP) once again stayed inside familiar level unable to break out of the range set out in recent sessions. Cable tested above 1.6400 in Europe and this occurred at the same time EUR/GBP fell below 0.8800 but the gains where unable to be sustained and eased back to opening levels on both pairs Overall the GBP/USD traded with a low of 1.6312 and a high of 1.6427 before closing the day at 1.6350 in the New York session. Looking ahead, March CPI is forecast at 4.4%. February Trade Balance forecast at -8.1bn vs. -7bn previously.

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