By FXEmpire.com

Analysis and Recommendations:

The GBP/USD is trading at 1.5534 trading in a fairly tight range as investors are worried about Wednesday’s 2nd quarter GDP data. Economist surveyed all believe that the data will show that the UK is deep in a recession. The definition of recession in the sense of GDP is two consecutive quarters of declining GDP. Last quarter, the UK fit this bill and was in what was referred to as a “technical recession” which markets ignored. It will not be so easy this quarter.

After harsh words last week from the IMF, and no real success with the UK austerity program, the BoE and the Finance Ministry along with David Cameron’s government will be forced to revised their end game.

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 24, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Jul. 24

CNY

Chinese HSBC Manufacturing PMI

49.50

48.20

AUD

RBA Governor Stevens Speaks

EUR

French Manufacturing PMI

43.6

45.5

45.2

HUF

Hungarian Retail Sales (YoY)

-2.50%

-2.00%

-2.80%

EUR

German Manufacturing PMI

43.3

45.3

45.0

EUR

Manufacturing PMI

44.1

45.3

45.1

GBP

BBA Mortgage Approvals

26.3K

31.4K

29.6K

CAD

Core Retail Sales (MoM)

0.5%

0.2%

-0.4%

CAD

Retail Sales (MoM)

0.3%

0.5%

-0.6%

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date

Time

Currency

Event

Previous

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 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 updated GBP/USD News.

Originally posted here