By FXEmpire.com
Analysis and Recommendations:
The GBP/USD followed along with the EURGBP, on the joys of the Jubilee Celebration. The Sterling gained momentum on returning to the markets to see the pair trading at 1.5451, up 0.0068.
The USD fell on today’s global markets the DI fell to 82.75 after hitting the mid 83’s just a few days ago. Global sentiment remains negative towards the euro, but investors have been shifting to gold as their safe haven. Leaving the USD floundering on the sidelines. After negative eco data last week and this including a revision of the Nonfarm productivity and a drop in the unit labor costs, investors believe that the US has hit the spring stall. Markets are waiting for news from the Fed. Which we should be hearing from soon.
An article out in today’s Wall Street Journal has markets chattering about the possibility of the Fed undertaking additional unconventional monetary policy action in the coming months. Titled “Fed Considers More Action amid New Recovery Doubts,” the article’s author Jon Hilsenrath writes of a “shift at the Federal Reserve putting back on the table the possibility of action to spur the recovery.” He adds that the June 19-20 meeting “could be too soon for conclusive decisions” and that the Fed is likely to wait and see how an additional month’s jobs data look before deciding to act one way or the other. As the Fed is thought to have used articles placed in the WSJ as a communications tool in the past, this is worth some amount of attention (but not too much – the article’s argument is that further monetary policy easing is contingent on developments in the economy, which shouldn’t be a surprise). The general line of argument that the Fed might contemplate further monetary policy action if U.S. economic data – and particularly employment data – were to weaken is one that we have emphasized over the past five months.
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 up to the data analysis and information in our weekly reports.
Economic Data for June 6, 2012 actual v. forecast
|
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jun. 06 |
02:30 |
AUD |
GDP (QoQ) |
1.3% |
0.5% |
0.6% |
|
10:00 |
EUR |
GDP (QoQ) |
0.0% |
0.0% |
0.0% |
|
|
11:00 |
EUR |
German Industrial Production |
-2.2% |
-1.0% |
2.2% |
|
|
12:45 |
EUR |
Interest Rate Decision |
1.00% |
1.00% |
1.00% |
|
|
13:30 |
USD |
Nonfarm Productivity (QoQ) |
-0.9% |
-0.7% |
-0.5% |
|
|
13:30 |
USD |
Unit Labor Costs (QoQ) |
1.3% |
2.2% |
2.0% |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jun 7 |
7:00 |
CHF |
Foreign Currency Reserves |
235.6B |
|
|
7:15 |
CHF |
CPI m/m |
0.1% |
||
|
8:30 |
GBP |
Services PMI |
53.3 |
||
|
TBD |
EUR |
French 10-y Bond Auction |
|||
|
11:00 |
GBP |
Asset Purchase Facility |
325B |
||
|
11:00 |
GBP |
Official Bank Rate |
0.50% |
0.50% |
|
|
TBD |
GBP |
MPC Rate Statement |
|||
|
12:30 |
USD |
Unemployment Claims |
383K |
||
|
14:00 |
USD |
Fed Chairman Bernanke Testifies |
|||
|
Jun 8 |
8:30 |
GBP |
PPI Input m/m |
-1.5% |
|
|
8:30 |
GBP |
Consumer Inflation Expectations |
3.5% |
||
|
TBD |
GBP |
10-y Bond Auction |
|||
|
12:30 |
USD |
Trade Balance |
-51.8B |
||
|
14:00 |
USD |
Fed Chairman Bernanke Testifies |
Government Bond Auctions
Date Time Country
Jun 07 00:30 Japan
Jun 07 08:30 Spain
Jun 07 08:50 France
Jun 07 09:10 Sweden
Jun 07 15:00 US
Jun 08 10:00 Belgium
Jun 08 15:30 Italy
Click here a current GBP/USD Chart.
Originally posted here
