Sterling Digest: January 27, 2012

• faithmight
• January 27th, 2012

GDP numbers from both the UK and the US were released this week. The British economy slipped into recession while the US economy actually grew 2.8% in the same quarter. Such a contrast in economies in normal market conditions would have set the $GBPUSD to break down. However, the markets have been anything but “normal” since 2008. So here we are in the midst of a $GBPUSD bull rally that has gone on for 10 consecutive trading sessions. It’s been incredible. While the $GBPUSD is certainly capable of such moves (anything can happen the markets, right), we haven’t seen a move like this in quite some time. While price never moves in one direction forever, it is understandably hard to step in front of this freight train.

Have a great weekend cable bulls. You’ve certainly earned it.

• Economy Grows Just 1.7% In 2011. What Now? (The Basis Point)
• Dollar Falls on Fed, Potential Greek Debt Deal (Credit Writedowns)
• USD Losing Reserve Currency Status: A Timeline (Seeking Alpha)
• UK: Into Recession (EconoMonitor)
• Osborne needs to come up with radical growth policies, and soon (Coffee House)
• BOE Miles: “Presumptuous” To Assume More QE In Feb (Forex Live)

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Tickers: FXB, GBPUSD

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