GBP/USD Fundamental Analysis March 26, 2012, Forecast

By FXEmpire.com

Analysis and Recommendations:

The GBP/USD is currently up at 1.5861 as the Sterling was able to capitalize in the weakness in the USD.

There was little in the way of economic news. In the UK the consumer confidence report was under forecast.

The USD was hit by two blows today, the both weakening the greenback.

The improving economic outlook in 2012 may no longer warrant ultra-easy monetary conditions, according to a top Federal Reserve official on Friday, who said the central bank should step back from doing much more in terms of monetary stimulus. His comments sent the USD falling.

The Commerce Department released data on new-home sales with economists were expecting 330,000 sales at an annualized clip of but the actual was 313,000. The pace of new-home sales cooled a bit while prices moved higher, according to data released Friday by the Commerce Department. The markets were hoping for a better then forecast results, to show that the US economy was improving. Economists may have set the bar too high, as the jobs market needs to continue improving before it will flow to the housing market and consumer confidence needs to increase. Although they are on course, neither has been better long enough to actually affect the housing markets.

Economic Reports March 23, 2012 actual v. forecast

Mar. 23	GBP	Nationwide Consumer Confidence	44	49	47
EUR	French Business Survey	96	93	93
EUR	Spanish PPI (YoY)	3.4%	3.6%	3.7%
TWD	Taiwanese Industrial Production (YoY)	8.4%	10.1%	-16.8%
EUR	Italian Retail Sales (MoM)	0.7%	0.2%	-0.8%
GBP	BBA Mortgage Approvals	33.1K	39.1K	38.0K
CAD	Core CPI (MoM)	0.4%	0.3%	0.2%
CAD	CPI (MoM)	0.4%	0.5%	0.4%
BRL	Brazilian Retail Sales (YoY)	7.3%	6.8%	6.7%

Economic Events Scheduled for March 26, 2012

07:00 EUR GfK German Consumer Climate

The Gfk German Consumer Climate Index measures the level of consumer confidence in economic activity. The data is compiled from a survey of about 2,000 consumers which asks respondents to rate the relative level of past and future economic conditions.

09:00 EUR German Ifo Business Climate Index

The German Ifo Business Climate Index rates the current German business climate and measures expectations for the next six months. It is a composite index based on a survey of manufacturers, builders, wholesalers and retailers. The index is compiled by the Ifo Institute for Economic Research.

15:00 USD Pending Home Sales (MoM)

The National Association of Realtors (NAR) Pending Home Sales Report measures the change in the number of homes under contract to be sold but still awaiting the closing transaction, excluding new construction.

Government Bond Auctions (this week)

Mar 26 09:10 Norway Nok 3.0bn NST 474 3.75% May 2021 Bond

Mar 26 10:30 Germany Eur 3.0bn new Mar 2013 Bubill

Mar 26 15:30 Italy Details BTP/CCTeu auction on Mar 29

Mar 27 09:10 Italy CTZ/BTPei auction

Mar 27 08:30 Spain 3 & 6M T-bill auction

Mar 27 17:00 US Auctions 2Y Notes

Mar 28 09:10 Italy BOT auction

Mar 28 17:00 US Auctions 3Y Notes

Mar 29 09:10 Italy BTP/CCTeu auction

Originally posted here