GBP Trading Outlook (01-08-2012)

The Sterling (GBP) the GBP/USD fell from 1.5700 to lower 1.5600 after Moody’s reaffirmed its negative outlook on the UK credit rating. The EUR/GBP took advantage to rally up to 0.7850 and is in danger of a trend reversal after falling from 0.8500 to 0.7800. The FOMC and ECB are both going to be major events for the GBP and traders expect range trading. Looking ahead, July Nationwide House Prices forecast 0.0% vs. -0.6%. Also July UK PMI Manufacturing 48.5 vs. 48.6 previously. July EU PMI Manufacturing is forecast at 44.1 vs. 44.1 previously.

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