Mon, Mar 19 2012, 14:07 GMT | FXstreet.com FXstreet.com (Barcelona) - The cross has ended the week trading back to the 1.5850 region, after trading more than 250 pips lower on Monday. The sterling did not bother much when Fitch has revised its AAA outlook from stable to negative last week, ahead of the BoE minutes due on March 21
Despite some improvement in the housing sector (RICS index -13% act. vs. -16% prev.), trade balance figures have continued to show a widening deficit and poor employment data have confirmed the fragility of the British labor market. This week’s key releases, including CPI, retail sales, annual budget and the BoE minutes would give investors a better approach of the health of the UK economy.
M.Mohi-uddin, Managing Director of Foreign Exchange Strategy at UBS, suggests that the likelihood of further easing from the BoE and investors pricing out another round of quantitative easing from the Fed, “Cable is likely to fall back into a 1.50-1.55 range initially compared to its current 1.55-1.60 range”.
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