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British Pound Edges Lower Across the Board As Investors Weigh Outlook For Recovery
Monday, 06 July 2009 05:01:50 GMT  |  DailyFX Market Research
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GBP-USD edged lower in Asian trading, gapping under Friday's lows at the Asian open to 1.6300 and trading to a low of 1.6259. Support is eyed at 1.6250 and 1.6200, the latter the perceived base of the current sterling range, though large stops are said to be building under 1.6180. GBP-USD was pressured by cross plays with EUR-GBP rising to highs of 0.8590 and taking out stops above 0.8585. Also weighing on sterling was GBP-JPY losses with the cross having fallen from levels seen at 157.00 in late NY Friday, to lows of 154.91. 154.08 is currently the base of the recent GBP-JPY trading range. The outlook for the UK recovery still remains grim with BDO Stoy Hayward warning that a period of slow recovery is ahead for the UK, calling it the "Saxophone-shaped recession." Chancellor Darling has also refused to rule out a pay freeze for public workers. The focus for sterling this week will be the Bank of England policy decision with the BOE expected to announce another GBP25 bln to increase the quantitative easing program to GBP150 bln.

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