Sterling Digest, April 24 2012: the moment of truth

• Posted by faithmight
• on April 24th, 2012

Wednesday may be a moment of truth in this sterling rally that has taken hold since the beginning of the year. Though the Federal Reserve announces its decision on monetary policy tomorrow, sterling traders have their eyes on the UK GDP release earlier that morning. But the Bank of England has already dismissed the GDP release. The BoE gives inflation trends more weight than the economy when setting monetary policy. So on disappointing GDP expect sterling to weaken, but that move lower may only be temporary as the market discounts GDP much like the BoE already has.

• BOE Miles: Weak Economy Vindicates My Call For Further QE (Forex Live)
• Why UK GDP continues to lag the G7 (Financial Times)
• Weekly shows more interesting pattern (Chart.ly)
• Daily shows Pound is at daily resistance area (Chart.ly)
• Elliott Wave Analysis For GBPJPY on 4Hours Chart (Elliot Wave Analysis)
• GBPJPY & GBPNZD Updates (50′s Blog)
• STERLING DIGEST April 19, 2012: the euro is dying (FaithMightFX)
• Government stealth war to weaken AUD (EuromoneyFXNews)

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