GBP Trading Outlook (04-10-2012)

The Sterling (GBP) the GBP/USD was on the back foot with some analysts suggesting the BOE will move to increase the Asset Purchase Program. GBP/USD broke 1.6100 and is threatening to slide further to 1.6000. The run of bad survey data this week is adding to the gloom with September Services PMI falling to 52.2 vs. 53.7 previously. Looking ahead, BOE forecast to hold at 0.5% and keep the asset purchase program at 375bn. Also, ECB forecast to hold rates at 0.75% and hold Press Conference afterwards.

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