By FXEmpire.com
Analysis and Recommendations:
The GBP/USD is trading at 1.6250. Sterling is flat from Friday’s close, as it trades at highs not seen since last August. GBP has risen over 2.6% since April 13th, with ten consecutive sessions of gains through Friday. Key upcoming data include PMI’s, all three of which should remain above 50 and help markets focus on the current environment as opposed to the recent weakness indicated by last week’s GDP data.
Recent strength vs EUR has been even more remarkable as EURGBP now trades below 0.8130 (see bottom chart), a level not seen since June 2010 when EURUSD was trading at crisis lows below 1.2000. We expect GBP to remain a beneficiary of intra-European diversification flows as investors seek to protect themselves from uncertainty in the Euro Area. Markets are waiting for the upcoming BoE meeting in early May.
Economic Data for April 30, 2012 actual v. forecast
|
KRW |
South Korean Industrial Production (MoM) |
-3.1% |
0.2% |
0.6% |
|
AUD |
HIA New Home Sales (MoM) |
-9.4% |
3.0% |
|
|
EUR |
CPI (YoY) |
2.6% |
2.5% |
2.6% |
|
EUR |
Greek Retail Sales (YoY) |
-13.00% |
-10.60% |
|
|
USD |
Core PCE Price Index (MoM) |
0.2% |
0.2% |
0.1% |
|
GDP (MoM) |
-0.2% |
0.2% |
0.1% |
|
|
USD |
Personal Spending (MoM) |
0.3% |
0.4% |
0.9% |
|
USD |
Chicago PMI |
61.0 |
62.2 |
Economic Events for the European and US Markets
15:00 USD ISM Manufacturing Index 53.5 53.4
The Institute of Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) rates the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The data is compiled from a survey of approximately 400 purchasing managers in the manufacturing industry. On the index, a level above 50.0 indicates industry expansion, below indicates contraction.
Government Bond Auctions (this week)
Date Time Country
May 01 09:30 UK
May 02 09:10 Sweden
May 02 09:30 Portugal
May 02 13:00 US
May 03 08:30 Spain
May 03 08:50 France
May 03 09:10 Sweden
May 03 09:30 UK
May 08 09:15 Austria
May 08 09:30 Belgium
May 08 14:30 UK
May 08 15:30 Italy
May 08 17:00 US
May 09 09:10 Sweden
May 09 09:30 Germany
May 09 09:30 Swiss
May 09 09:30 UK
May 09 14:30 Sweden
May 09 15:30 Italy
May 09 17:00 US
May 10 15:00 US
May 10 17:00 US
May 11 09:10 Italy BOT auction
May 11 10:00 Belgium
Click here for further GBP/USD Forecast.
Originally posted here
