By FXEmpire.com
Analysis and Recommendations:
The GBP/USD is trading at 1.5600 down 0.0053. UK claimant count was much higher than market forecast.
Sterling has weakened 0.4% from yesterday’s close, as movement is driven by the market’s reaction to dovish BoE minutes release. The tone of the minutes indicated a persistent concern over global growth and the potential for contagion emanating from the Eurozone, generating a dovish bias to policy given the implications for a weakened inflation profile as a result of a widened output gap. Policymakers voted 7-2 to increase asset purchases by ?50bn (?75bn was discussed) to ?375bn, with abstentions from members Dale and Broadbent, both of whom preferred to see the simulative impact of the recently announced Funding for Lending Scheme.
Although the Bank Rate was held at 0.5%, the July meeting was the second in which cuts were deliberated. On a brighter note, Chancellor Osborne announced a ?51bn infrastructure spending program to help growth. Meanwhile, employment was relatively strong, with the unemployment rate falling to 8.1% and employment increasing 181K on a 3 month basis.
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 July 19, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul. 18 |
JPY |
Monetary Policy Meeting Minutes |
|||
|
GBP |
Average Earnings Index +Bonus |
1.5% |
1.4% |
1.4% |
|
|
GBP |
Claimant Count Change |
6.1K |
5.0K |
6.9K |
|
|
GBP |
MPC Meeting Minutes |
||||
|
USD |
Building Permits |
0.755M |
0.765M |
0.784M |
|
|
USD |
Housing Starts |
0.760M |
0.745M |
0.711M |
|
|
USD |
Fed Chairman Bernanke Testifies |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 19 |
6:00 |
CHF |
2.48B |
|
|
8:00 |
EUR |
4.6B |
||
|
8:30 |
GBP |
1.4% |
||
|
12:30 |
USD |
|||
|
14:00 |
USD |
4.55M |
||
|
14:00 |
USD |
-16.6 |
||
|
Jul 20 |
6:00 |
EUR |
-0.3% |
|
|
8:30 |
GBP |
15.6B |
Government Bond Auctions
Date Time Country
Jul 19 00:30 Japan
Jul 19 08:30 Spain
Jul 19 08:50 France
Jul 19 09:30 UK
Jul 19 09:50 France
Jul 19 15:00 US
Jul 19 17:00 US
Jul 23- n/a UK
Jul 23 09:30 Germany
Jul 24 08:30 Netherlands
Jul 24 08:30 Spain
Jul 24 15:30 Italy
Jul 24 17:00 US
Jul 25 09:30 Germany
Jul 25 15:30 Italy
Jul 25 17:00 US
Jul 26 00:30 Japan
Jul 26 09:10 Italy
Jul 27 09:10 Italy
Jul 27 17:00 US
Click here for further GBP/USD Forecast.
Originally posted here
