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GBP Trading Outlook (02-07-2012)

The Sterling (GBP) Cable moved to 1.5700 in line with the stock market moves but lagged behind the EUR/USD with the EUR/GBP recovering some of its recent losses. EUR/GBP moved from below 0.8000 to 0.8080 and could move even higher as the Bank of England is expected to expand their Asset Purchase program when they meet Thursday. Also ahead, June EU Manufacturing PMI forecast at 44.8. Also UK Manufacturing PMI forecast at 46.5 vs. 45.9 previously. Also released, May EU Unemployment Rate forecast at 11.1% vs. 11.0% previously.

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