GBP Trading Outlook (13-01-2012)
The Sterling (GBP) was muted and left behind in the risk on rally yesterday with the EUR/GBP short covering keeping the GBP/USD at the 1.5300 level. The BOE held at 0.5% and kept the Asset purchase program at 275BN as widely expected. The market is cautious to get long in the GBP/USD when the Euro and AUD is providing a much safer short term option in recent trading sessions. Looking ahead, December PPI forecast at 0% vs. 0.2% previously m/m.
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