GBP Trading Outlook (09-12-2011)

The Sterling (GBP) the BOE held at 0.5% as widely expected and the GBP/USD flowed the Euro higher and then lower after the Draghi disappointment. EUR/GBP tested 0.8500 briefly at the height of the EUR/USD weakness but this level held and we saw a small bounce into the close. GBP/USD was able to hold above 1.5600 and will follow the Euro again today for movement. Looking ahead, October Trade Balance forecast at -9.4bn vs. -9.8bn previously.

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