GBP/USD Fundamental Analysis April 3, 2012, Forecast

By FXEmpire.com

Analysis and Recommendations:

The GBP/USD is currently holding at 1.6024 as the sterling has been able to support the move over the 1.60 level. The GBP was able to climb as high as 1.6062 before cooling off.

UK manufacturing saw its strongest growth in 10 months, according to the latest Markit/Chartered Institute of purchasing and Supply survey, published by Reuters. The seasonally adjusted Markit/CIPS UK Manufacturing Purchasing Managers’ Index rose to a ten-month high of 52.1 in March, from a revised reading of 51.5 in February.

Markit pointed out that the PMI has now signalled expansion for four successive months, with its average reading in Q1 2012 (51.8) the highest since the second quarter of last year.

The greenback was able to regain some territory on the pound based on strong economic data. The ISM Economic research indicates that measures of global output may be behind the recent strength in U.S. inflation, said James Bullard, the president of the St. Louis Federal Reserve Bank. Bullard made the remarks in a speech.

The manufacturers report is considered a gauge that measures the strength of the manufacturing sector, produced by the Institute for Supply Management, rose to 53.4% last month from 52.4% in February. Reading over 50% indicates that more manufacturers are expanding than contracting.

Economic research indicates that measures of global output may be behind the recent strength in U.S. inflation, said James Bullard, the president of the St. Louis Federal Reserve Bank. Bullard made the remarks in a speech.

A gauge that measures the strength of the manufacturing sector, produced by the Institute for Supply Management, rose to 53.4% last month from 52.4% in February. Reading over 50% indicates that more manufacturers are expanding than contracting.

Economic Data for April 2, 2012 actual v. forecast

00:00	KRW	South Korean CPI (YoY)	2.6%	3.1%	3.1%
00:50	JPY	Tankan Large Manufacturers Index	-4	-1	-4
02:30	AUD	Building Approvals (MoM)	-7.8%	0.3%	1.1%
06:05	INR	Indian Trade Balance	-15.2B	-13.0B	-14.8B
08:00	DKK	Danish Retail Sales (YoY)	-0.5%	-1.7%	-3.3%
08:15	CHF	Retail Sales (YoY)	0.8%	3.2%	4.7%
08:30	CHF	SVME PMI	51.1	49.5	49.0
08:50	EUR	French Manufacturing PMI	46.7	47.6	47.6
08:55	EUR	German Manufacturing PMI	48.4	48.1	48.1
09:00	EUR	Manufacturing PMI	47.7	47.7	47.7
09:30	GBP	Manufacturing PMI	52.1	50.5	51.5
10:00	EUR	Unemployment Rate	10.8%	10.8%	10.7%
15:00	USD	ISM Manufacturing Index	53.4	53.0	52.4

Economic Events scheduled for April 3, 2012 that affect the European and American Markets

T.B.D GBP Halifax House Price Index (MoM) -0.3% -0.5%

The Halifax House Price Index measures the change in the price of homes and properties financed by Halifax Bank of Scotland (HBOS), one of the U.K.’s largest mortgage lenders. It is a leading indicator of health in the housing sector.

10:00 EUR GDP (QoQ) -0.3% -0.3%

Gross Domestic Product (GDP) measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity and the primary indicator of the economy’s health.

19:00 USD FOMC Meeting Minutes

The Federal Open Market Committee (FOMC) Meeting Minutes are a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights regarding the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.

Government Bond Auctions (this week)

Apr 03 09:30 Belgium Auctions 3 & 6M T-bills

Apr 03 09:30 UK Conventional Gilt Auction

Apr 04 08:30 Spain Bono auction

Apr 04 14:30 Sweden Details T-bill auction on Apr 11

Apr 05 08:50 France OAT auction

Apr 05 15:00 US Announces auctions

Apr 05 15:30 Italy Details BOT on Apr 11 & BTP/CCTeu on Apr 12

Originally posted here