By FX Empire.com
Economic Events: (GMT)
07:00 EUR German CPI (MoM) -0.4% -0.4%
The German Consumer Price Index (CPI) measures the changes in the price of goods and services purchased by consumers.
A higher than expected reading should be taken as positive/bullish for the EUR, while a lower than expected reading should be taken as negative/bearish for the EUR
08:15 CHF CPI (MoM) -0.3% -0.2%
The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
A higher than expected reading should be taken as positive/bullish for the CHF, while a lower than expected reading should be taken as negative/bearish for the CHF.
09:30 GBP PPI Input (MoM) 0.4% -0.6%
Producer Price Index (PPI) Input measures the change in the price of goods and raw materials purchased by manufacturers. The index is a leading indicator of consumer price inflation.
A higher than expected reading should be taken as positive/bullish for the GBP, while a lower than expected reading should be taken as negative/bearish for the GBP
13:30 USD Trade Balance -48.4B -47.8B
The Trade Balance measures the difference in value between imported and exported goods and services over the reported period. A positive number indicates that more goods and services were exported than imported.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
14:55 USD Michigan Consumer Sentiment Index 74.3 75.0
The University of Michigan Consumer Sentiment Index rates the relative level of current and future economic conditions. There are two versions of this data released two weeks apart, preliminary and revised. The preliminary data tends to have a greater impact. The reading is compiled from a survey of around 500 consumers.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
17:30 USD Fed Chairman Bernanke Speaks
Federal Reserve Chairman Ben Bernanke (February 2006 – January 2014) is to speak. As head of the Fed, which controls short term interest rates, he has more influence over the U.S. dollar’s value than any other person. Traders closely watch his speeches as they are often used to drop hints regarding future monetary policy.
His comments may determine a short-term positive or negative trend.
19:00 USD Federal Budget Balance -65.2B -86.0B
The Federal Budget Balance measures the difference in value between the federal government’s income and expenditure during the reported month. A positive number indicates a budget surplus, a negative number indicates a deficit.
A higher than expected reading should be taken as positive/bullish for the USD, while a lower than expected reading should be taken as negative/bearish for the USD.
GBP/USD Fundamental Analysis February 10, 2012, Forecast
Analysis and Recommendations:
The GBP/USD is currently at 1.5826 and ending pretty close to the opening this morning. The pair will most likely continue in a tight range until new data is released in the USA today, we should see some calm in the markets as the Greek crisis is now just about done for. A deal has finally been reached among the political factions to accept the austerity measures and now the formalities just need to be concluded
During its Thursday meeting, the Bank of England announced an injection of ?50bn into ailing economy.The decision to extend quantitative easing program to ?325bn had been widely predicted after UK economy shrank last year.
At the end of its monthly meeting on Thursday, the Bank’s monetary policy committee also left interest rates at a record low of 0.5%. The Sterling surged against its trading partners, the euro which had been up in early morning trading lost some of its gains.
The European Central Bank (ECB) has decided to keep its key lending rate unchanged for another month, in line with what most analysts have been expecting. Politicians in Spain, France and Italy were hopeful that the ECB would cut rates to offset rising debt burdens and help save them from further ratings downgrades. Greece, Portugal and Ireland, the three countries already in receipt of bailout funds from Brussels, were also keen to see lower rates that would cut their borrowing costs and, in the case of Lisbon and Dublin, prevent the need for further bailouts.
In the US today were the Unemployment Initial claims data which is a good indicator of whether layoffs are rising or falling. They’ve declined sharply since last summer, meaning that more people are finding work or fewer are losing their jobs.
Jobless claims dropped by 15,000 to a seasonally adjusted 358,000 in the week ended Feb. 4, the Labor Department said. That’s near a four-year low. This was great news for the US as the data supported last weeks data that unemployment had dropped to 8.3% from 8.5%. This news should spur a round of consumer confidence and help spending in the US. This also supports economists statements that the US economy is turning around. The dollar gained on this news, but was weakened by the news on Greece.
The momentum continued on the side of the pound pushing the pair to a high of 1.5884
Thursdays Economic Reports ( actual v. forecast )
|
AUD |
1.00 |
-3.00 |
||
|
KRW |
3.25% |
3.25% |
3.25% |
|
|
CNY |
4.5% |
4.0% |
4.1% |
|
|
CNY |
0.7% |
0.8% |
1.7% |
|
|
CHF |
-19 |
-22 |
-24 |
|
|
GBP |
0.5% |
0.2% |
-0.5% |
|
|
GBP |
1.0% |
0.3% |
-0.1% |
|
|
GBP |
-7.1B |
-8.4B |
-8.9B |
|
|
GBP |
0.50% |
0.50% |
0.50% |
|
|
EUR |
1.00% |
1.00% |
1.00% |
|
|
USD |
358K |
370K |
373K |
|
|
EUR |
||||
|
USD |
3515K |
3525K |
3451K |
|
|
MXN |
4.0% |
4.0% |
3.8% |
|
|
GBP |
-0.2% |
-0.2% |
Scheduled Sovereign Bond Sales
Feb 10 11:00 Belgium OLO auction
Originally posted here
