Analysis and Recommendations:
The GBP/USD dipped earlier after the BoE statement but regained after Draghi and associates offered no new policy, no new plans and no action. The euro continued to decline and the GBPUSD climbed to trade at 1.5552
The Bank of England on earlier left its key lending rate unchanged and made no changes to its planned asset purchases. As expected, the bank said its Monetary Policy Committee left the so-called bank rate at a record low 0.5%, where it has stood since March 2009, and remains on track to bring total asset purchases, the centerpiece of its quantitative-easing strategy, to 375 billion pounds ($583 billion). The bank raised the size of its asset-buying program by 50 billion pounds last month and said Thursday that it expects purchases to take another three months to complete. “The scale of the program will be kept under review,” the bank said.
The number of people who filed applications for unemployment benefits rose by 8,000 last week to a seasonally adjusted 365,000, the Commerce Department said Thursday. Economists surveyed by MarketWatch had projected claims would rise to 370,000 from last week’s upwardly revised level of 357,000. A more stable barometer of labor-market trends, the four-week claims average, dropped 2,750 to 365,500, the lowest level since late March. The four-week average reduces seasonal volatility in the weekly data. Meanwhile, continuing claims decreased by 19,000 to a seasonally adjusted 3.27 million in the week ended July 21. About 5.96 million people received some kind of state or federal benefit in the week ended July 14, down 69,672 from the prior week.
FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more recent analysis and information in our weeklyreports and we provide daily updates and outlooks
Economic Data August 2, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Aug. 02 |
AUD |
Retail Sales (MoM) |
1.0% |
0.7% |
0.8% |
|
AUD |
Trade Balance |
0.01B |
-0.35B |
-0.31B |
|
|
EUR |
Spanish Unemployment Change |
-27.80K |
-98.90K |
||
|
CHF |
Retail Sales (YoY) |
3.7% |
2.0% |
6.2% |
|
|
CHF |
SVME PMI |
48.6 |
47.0 |
48.1 |
|
|
NOK |
Norwegian Unemployment Rate |
3.00% |
3.00% |
3.00% |
|
|
EUR |
Spanish 10-Year Obligacion Auction |
6.647% |
6.430% |
||
|
GBP |
Interest Rate Decision |
0.50% |
0.50% |
0.50% |
|
|
GBP |
BOE QE Total |
375B |
375B |
375B |
Upcoming Economic Events that affect the CHF, EUR and GBP
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Aug 3 |
8:30 |
GBP |
51.3 |
||
|
9:00 |
EUR |
0.6% |
Government Bond Auctions
Date Time Country
Aug 06 09:10 Norway
Aug 07 00:30 Japan
Aug 07 09:15 Austria
Aug 07 14:30 UK
Aug 07 17:00 US
Aug 08 09:30 Germany
Aug 08 10:00 Norway
Aug 08 15:30 Italy
Aug 08 17:00 US
Aug 09 15:30 Italy
Aug 09 17:00 US
Aug 10 10:00 Belgium
Click here for further GBP/USD Forecast.
Originally posted here
