By FXEmpire.com
Analysis and Recommendations:
The GBP/USD fell below the 1.55 price level to trade at 1.5499 as the USD picked up tremendous momentum as the euro tumbled to record lows. The euro fell right through the 1.22 price and barely stopped at the 1.21 price before ending in the mid 1.20?s. After investors ran from euro, after news of problems in Greece and the looks of a cut off from funds followed by rising problems in Spain.
It seemed that all investors looked for today was safety, but not short term safe havens but new assets to earn profits, after 2 1/2 years of dealing with the drama in the eurozone, it seems like markets have given up hope and prospects.
Market sentiment is difficult to read right now, as investors expected a quiet week leading into month end figures next week, and after a week of better than expected earnings reports.
Sterling has fallen 0.5% from Friday’s close, with downward movement the result of external concerns driving broader market sentiment in the absence of domestic data. Wednesday’s Q2 GDP release should shift the focus back to fundamentals, where the y/y pace of contraction is expected to fall from 0.2% to 0.3%. A weak release is likely to put further pressure on the ruling coalition, and a lack of political support for austerity will increase the potential for the UK to lose its AAA rating.
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 23, 2012 actual v. forecast
|
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul. 23 |
01:30 |
TWD |
Taiwanese Unemployment Rate |
4.24% |
4.30% |
4.25% |
|
02:30 |
AUD |
PPI (QoQ) |
0.5% |
0.3% |
-0.3% |
|
|
10:30 |
EUR |
German 12-Month Bubill Auction |
-0.054% |
0.019% |
||
|
13:30 |
USD |
Chicago Fed National Activity |
-0.15 |
-0.48 |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 24 |
7:00 |
EUR |
French Flash Manufacturing PMI |
45.2 |
|
7:00 |
EUR |
French Flash Services PMI |
47.9 |
|
|
7:30 |
EUR |
German Flash Manufacturing PMI |
45.0 |
|
|
7:30 |
EUR |
German Flash Services PMI |
49.9 |
|
|
8:00 |
EUR |
Flash Manufacturing PMI |
45.1 |
|
|
8:30 |
GBP |
BBA Mortgage Approvals |
30.2K |
|
|
9:00 |
EUR |
Flash Services PMI |
47.1 |
|
|
13:00 |
USD |
Flash Manufacturing PMI |
52.5 |
|
|
Jul 25 |
8:00 |
EUR |
German Ifo Business Climate |
105.3 |
|
8:30 |
GBP |
Prelim GDP q/q |
-0.3% |
|
|
10:00 |
GBP |
CBI Industrial Order Expectations |
-11 |
|
|
13:00 |
EUR |
Belgium NBB Business Climate |
-13.2 |
|
|
14:00 |
USD |
New Home Sales |
369K |
|
|
14:30 |
USD |
Crude Oil Inventories |
||
|
Jul 26 |
6:00 |
EUR |
GfK German Consumer Climate |
5.8 |
|
8:00 |
EUR |
M3 Money Supply y/y |
2.9% |
|
|
12:30 |
USD |
Core Durable Goods Orders m/m |
0.7% |
|
|
12:30 |
USD |
Unemployment Claims |
||
|
14:00 |
USD |
Pending Home Sales m/m |
5.9% |
|
|
Jul 27 |
27th-31st |
GBP |
Nationwide HPI m/m |
-0.6% |
|
All Day |
EUR |
German Prelim CPI m/m |
-0.1% |
|
|
7:00 |
CHF |
KOF Economic Barometer |
1.16 |
|
|
12:30 |
USD |
Advance GDP q/q |
1.9% |
|
|
13:55 |
USD |
Revised UoM Consumer Sentiment |
72.0 |
Government Bond Auctions
Date Time Country
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
Click here to read GBP/USD Technical Analysis.
Originally posted here
