GBP Trading Outlook (19-06-2012)

The Sterling (GBP) was on the backfoot as the EUR/USD losses mounted but the GBD/USD stood up well supported by fresh EUR/GBP selling. EUR/GBP closed just above 0.8000 and a break below may see the cross trade towards 0.7800. The market has been selling for a few months but the support at 0.8000 has proven too solid so far. Looking ahead, May CPI forecast at 0.1% vs. 0.6% previously. Also May Retail Price index forecast at 0.2% vs. 0.7% previously.

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