FX

USD Outlook Still Bullish but In-House Index Keeps Us Sidelined for Now
Currencies

Euro remains very well supported on dips Retail positioning still looking for USD strength Cable and Cad SSI ratios stand out and warn of more USD weakness UK GDP data much softer; opens intraday underperformance in Pound Key event risk later today in the form of the FOMC rate decision We have yet to see any real justification for the latest Euro rally, but at the same time, would not

Sterling Takes Heavy Losses as UK Falls Back into Recession
Currencies

THE TAKEAWAY: Negative UK GDP growth in Q1 2012 -> Sterling under pressure as data diminishes confidence Great Britain’s Gross Domestic Product contracted in the first quarter, pushing the UK into its first double-dip recession since the 1970s. The report is expected to increase pressure on UK officials, most important PM David Cameron who has faced criticism for promoting austerity instead of government stimulus.