GBP Trading Outlook (22-06-2012)

The Sterling (GBP) good EUR/GBP selling once again saved the GBP/USD from part of the large falls overnight but we did pull back from day highs at 1.5725 to below 1.5600 in the US session. Strong UK May Retail sales at 1.4% vs. 1.0% helped GBP outperform against most risk currencies. The catalyst for heavy selling later was rumors of downgrade of most UK banks by Moody’s. Looking ahead, German June IFO forecast at 106.1 vs. 106.9 previously. Also ahead, EU Finance Ministers meet.

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