The new trading week may have opened with GBP bullishness but as the Monday session ended sterling slipped across the board into Tuesday’s UK inflation release. Expect GBP to weaken further on softer-than-expected inflation even though it is certainly a good thing for the British economy. Don’t expect much follow through on weakness. Sterling may look weak on fundamentals but recent price action favors GBP.
- Inflation dip adds to recovery hopes (Reuters)
- THE BUDGET MATTERS BUT THE BANK MATTERS MORE (EconomicsUK.com)
- Cable: Middle East Sovereign Still Active (Forex Live)
- Britain to Offer a 100-Year Gilt (Crossing Wall Street)
- FITCH REVISES UK OUTLOOK TO NEGATIVE (Business Insider)
- US And UK May Release Oil Reserves (24/7 Wall St.)
- EURGBP Update (50’s Blog)
- The question: is the USD no longer a good funding currency… (@johnkicklighter on Chart.ly) [More hints that USD is now trading on fundamentals and not risk. Check out the contrasting chart.]