The British pound looks FinMin Summit for direction on FOMC minutes EU

7th July 2012 07:10 GMT fundamental outlook for British Pound: Neutral The British pound remains vulnerable to risk sentiment trends, GBPUSD show a firm correlation with the MSCI World Stock Index. In the aftermath of last week's disappointing U.S. jobs report and underwhelming stimulus efforts by the ECB and the BOE is hoping to make this the FOMC minutes from June's outing amidst that the Fed bring relief. Although Ben Bernanke and company decided to introduce no QE3 last month, dealers are keen to assess the extent to which such an option entered into conversation, expectations for a possible expansion of the balance sheet, revealed in the coming months will lead to. All in all, the utility seems to be of another QE program highly suspect. In fact, with U.S. Treasury yields already so low that after adjusting for inflation, real interest rates are negative, the 10-year maturity, it seems unlikely that a further push much lower borrowing not to stimulate. The Fed is certainly not blind to the limits of further QE, but it is equally sensitive to the fact that trigger a strong signal to financial markets may appeal to pandemonium. This means that the door open for further easing is likely to be retained, at least rhetorically. In this sense, language increases the likelihood that additional accommodation is expected to increase the perceived risk, and with him the pound. Needless to say, the reverse scenario is also the case. In addition to investors yearning for looser monetary conditions, the debt crisis is set to the euro zone to return to the top, as the currency of Finance issued for a meeting convened on Monday. The sit-down is expected that civil servants, the implementation of June to begin to see the EU summit. Although little longer-term issues such as joint bank governance and expanding the EFSF / ESM bailout funds forces should be reached, the Spanish bank bail out prominently in the proceedings. Information about the efforts are likely to be ratified at the seat. The British pound continues to be a beneficiary of the regional port flows in times of growing concern over the euro zone, which means that as a result of disappointing investors, the UK currency may increase. DailyFX provides forex news and technical analysis on trends affecting the global currency markets.