Last week, the economic data built the case for a possible double-dip recession. This week, the PMI trifecta (industrial, construction, & services) came out quite strong. However, the bulls never rallied $GBPUSD back above 1.60. Then today we get dismal manufacturing and industrial production numbers and $GBPUSD takes a real hit in sentiment as price breaks to new lows for the week. $GBPCAD, $GBPAUD, and $GBPNZD are all lower on the week as well. Anytime the market shows its true bias, both technically and in reaction to fundamentals, you have to go with the herd. And sterling bears are keen on taking it lower short-term.
- Sentance Says BOE Headed for Debate on Stimulus Exit (Bloomberg)
- Bank of England holds on quantitative easing and interest rates (The Guardian)
- UK manufacturing output in shock fall in February (BBC)
- 3m-on-3m rate in UK manufacturing output was +0.2% in Feb, moving in line with trend signalled by PMI (Markit Economics) [chart]
- Britons act to profit from the weak euro (The Telegraph)
- The new dovish minority at the Fed (Reuters)
- GBPUSD bull trap? (bgip-blog.com)
- EURGBP Update (50’s Blog)
- GBPUSD Update (50’s Blog)
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