British Data may Support GBP despite Risk Uncertainty

The British pound (GBP) was seen trading only mildly lower yesterday following news of stable growth in the island economy's service sector and producer-based inflation last week. Against the US dollar (USD) the pound was seen trading somewhat bearish in late trading as shifts into safe-haven investments pulled money out of the Cable and into other stores of value. The EUR/GBP, however, was more mixed as news affecting both currencies was centered on uncertainty; sentiment appears to be favoring a downward movement of the pair as of today's early trading hours. While the pound was seen moving modestly higher against the EUR yesterday, it appears to have moved lower against the Japanese yen, as the safety of the JPY caught traders' appeal in recent trading. British manufacturing and housing both appear to be offering solid signs of economic growth, though its industrial production data last week was mildly disappointing. Most speculators view the UK as only a slightly better investment option than the euro zone residing to its south and east. Markets may capitalize on this by holding their GBP positions longer, but the region's bearish move has some investors uneasy about such positions. As for today, traders will witness a wide series of publications from Britain centered mainly on inflationary growth. At 9:30 GMT, the UK Office of National Statistics will be releasing its data on CPI, RPI, DCLG HPI, and the country's trade balance. At 10:00 GMT, Conference Board, Inc. (CB) will publish its conglomerate report on seven indices affecting a variety of sectors of the British economy, known as the Leading Index. If inflationary growth is on target, the GBP may find modest support in today's trading despite recent setbacks in risk outlook.

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading. ForexYard