By FXEmpire.com
Analysis and Recommendations:
The GBP/USD continues to fall trading at 1.5941, on the strength of the USD.
At the start of trading in Europe, Germany reported a surprisingly strong Q1 GDP growth. The market reaction was limited and the Greek debt crisis remained on the radar of investors.
Nevertheless, the report suggested that markets might have been a bit too negative on the European economy. EUR/GBP rebounded off the lows in the 0.7965 area in Asia. Mid-morning, the UK trade balance showed a slightly wider than expected deficit. The market reaction was again moderately sterling negative.
Data from the Euro-Zone this morning confirmed that European inflation slowed last month and exports dropped, further signs that the current fiscal crisis is continuing to undermine the economy and consumer demand.
During the Bank of England inflation report released this morning, Mervyn King, Governor of the Bank of England has warned that the UK would not be unscathed by the situation in the Euro-Zone. Growth forecasts for the UK have been reduced for this year from 1.2% to 0.8%
US eco data today was fairly positive and strengthen the dollar in midsession trading. Building permits were down were cast aside with a huge jump in building starts. Also industrial production saw a positive result in today’s data.
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 May 16, 2012 actual v. forecast
|
JPY |
Tertiary Industry Activity Index |
-0.6% |
-0.3% |
0.0% |
|
AUD |
Westpac Consumer Sentiment |
0.80% |
-1.60% |
|
|
AUD |
Wage Price Index (QoQ) |
0.9% |
0.8% |
1.0% |
|
GBP |
Average Earnings Index +Bonus |
0.6% |
1.0% |
1.1% |
|
GBP |
Claimant Count Change |
-13.7K |
5.0K |
-5.4K |
|
EUR |
CPI (YoY) |
2.6% |
2.6% |
2.6% |
|
EUR |
Core CPI (YoY) |
1.6% |
1.5% |
1.6% |
|
USD |
Building Permits |
0.715M |
0.730M |
0.769M |
|
USD |
Housing Starts |
0.717M |
0.680M |
0.699M |
|
Manufacturing Sales (MoM) |
1.90% |
1.00% |
-0.20% |
|
|
USD |
Industrial Production |
1.1% |
0.6% |
-0.6% |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
May 17 |
13:30 |
USD |
365K |
367K |
|
|
13:30 |
USD |
3235K |
3229K |
||
|
15:00 |
USD |
10.0 |
8.5 |
:
Click here for updated GBP/USD News.
Originally posted here
