By FXEmpire.com

Analysis and Recommendations:

The GBP/USD is currently down slightly to 1.6125, but continues to hold above the 1.60 price level.

The British economy shrank for a second consecutive quarter in the first three months of 2012, meeting a widely-used definition of recession, according to data released Wednesday by the U.K. Office for National Statistics. The UK economy contracted for a second consecutive quarter to meet the widely-used definition of recession.

The main event will be FOMC rate decision and statement out later today in the US.

In the US today, orders for long-lasting U.S. goods sank 4.2% in March, largely because of fewer booking for commercial aircraft, the Commerce Department reported Wednesday. Economists had expected orders to fall by 2.9%.

Investors are beginning to wonder if the US economy has hit the spring stall again this year.

Economic Data April 25, 2012 actual v. forecast

PLN

Polish Unemployment Rate

13.30%

13.40%

13.50%

GBP

GDP (QoQ)

-0.2%

0.1%

-0.3%

GBP

GDP (YoY)

0.0%

0.3%

0.5%

GBP

CBI Industrial Trends Orders

-8

-6

-8

USD

Core Durable Goods Orders (MoM)

-1.1%

0.5%

1.9%

USD

Durable Goods Orders (MoM)

-4.2%

-1.7%

1.9%

USD

Interest Rate Decision

0.25%

0.25%

0.25%

Economic Events scheduled for April 26, 2012 that affect the European and American Markets

TBD EUR Consumer Price Index (YoY) (Apr)

The Germany consumer price index released by the Statistiches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends.

TBD EUR Consumer Price Index (MoM) (Apr)

The Germany consumer price index released by the Statistiches Bundesamt Deutschland measures the average price change for all goods and services purchased by households for consumption purposes. CPI is the main indicator to measure inflation and changes in purchasing trends

06:00 EUR Retail Sales (MoM) (Mar)

The Retail Sales released by the Statistiches Bundesamt Deutschland is a measure of changes in sales of the German retail sector. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales. The changes are widely followed as an indicator of consumer spending

06:00 EUR Retail Sales (YoY) (Mar)

The Retail Sales released by the Statistiches Bundesamt Deutschland is a measure of changes in sales of the German retail sector. It shows the performance of the retail sector in the short term. Percent changes reflect the rate of changes of such sales. The changes are widely followed as an indicator of consumer spending.

08:30 GBP BBA Mortgage Approvals (Mar)

The Mortgage Approvals published by the British Bankers’ Association (BBA)measure the number of home loans issued by the BBA during the previous quarter. It is considered as a leading indicator of the UK Housing Market. A Mortgage growth represents a healthy housing market that stimulates the overall UK economy

09:00 EUR Consumer Confidence (Apr)

The Consumer Confidence released by the European Commission is a leading index that measures the level of consumer confidence in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn.

09:00 EUR Economic Confidence (Apr)

The Euro Zone Economic Confidence released by the European Commission is a survey of consumers confidence in economic activity. It indicates the trend of the overall Euro Zone economy.

09:00 EUR Industrial Confidence (Apr)

The Industrial Confidence released by the European Commission is an index that measures the level of industrial executives confidence in economic activity. The survey asks about orders and buildup of inventories. A high level of industrial confidence stimulates economic expansion while a low level drives to economic downturn.

23:01 GBP Gfk Consumer Confidence (Apr)

The GfK Group Consumer Confidence is a leading index that measures the level of consumer confidence in economic activity. A high level of consumer confidence stimulates economic expansion while a low level drives to economic downturn

Government Bond Auctions (this week)

Apr 26 00:30 Japan Auctions 2Y JGBs

Apr 26 09:10 Italy BOT auction

Apr 26 14:30 Sweden Details I/L bond auction on May 03

Apr 26 17:00 US Auctions 7Y Notes

Apr 27 09:10 Italy BTP/CCTeu auction

Click here for updated GBP/USD News.

Originally posted here