GBP Trading Outlook (05-07-2012)

The Sterling (GBP) the GBP/USD fell below 1.5600 as its own risk event weighed with the BOE rate announcement today and expected to result in some form of easing for the UK economy. The EUR/GBP has been very stable in a 0.8000-0.8050 range. Also ahead, ECB Rate Announcement forecast to cut to 0.75% vs. 1% previously. BOE Rate announcement forecast to hold at 0.5%. The BOE Asset Purchase program is forecast to expand to 375bn vs. 325bn previously.

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