GBP Trading Outlook (02-08-2012)

The Sterling (GBP) GBP/USD fell back to 1.5600 after very weak housing data and manufacturing PMI overnight. The July UK manufacturing PMI came in at 45.4 vs. 48.4 previously. The GBP/USD and EUR/GBP will both be in play tonight at the BOE & ECB meeting. Looking ahead, Bank of England Rate meeting forecast to hold rates at 0.5% and keep their Asset Purchase Program at 375bn. Also ECB Rate meeting forecast to hold at 0.75% but all attention on the Press Conference held afterwards and what Draghi can deliver.

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