By FXEmpire.com

Analysis and Recommendations:

The GBP/USD is trading at 1.5683 down 0.0062 after a disappointing CBI release today, added more negative data for the already poor economic situation in the UK. Markets are waiting to see the response from the BoE, after dire warning were issued by the IMF a few weeks ago and the UK GDP release last week showed that the UK was deep in recessionary territory.

Thursday’s BoE meeting is the main event for GBP, though domestic PMI’s (Wednesday through Friday) and external factors should also provide for a considerable amount of movement. GBPUSD is currently trading at the upper end of its two month range, and further gains are likely to be challenging given concerns over BoE policy. The BoE acted last month, expanding its asset purchase program by ?50bn, leading most market participants to believe that policy will remain unchanged

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 for July 30, 2012 actual v. forecast

Date

Time

Currency

Importance

Event

Actual

Forecast

Previous

Jul. 30

00:50

JPY

Industrial Production (MoM)

-0.1%

1.5%

-3.4%

02:00

AUD

HIA New Home Sales (MoM)

2.8%

0.7%

10:20

EUR

Italian 10-Year BTP Auction

5.96%

5.82%

11:00

GBP

CBI Distributive Trades Survey

11

15

42

Upcoming Economic Events that affect the CHF, EUR and GBP

Date

Time

Currency

Event

Forecast

Previous

Jul 31

6:45

EUR

French Consumer Spending m/m

0.4%

7:55

EUR

German Unemployment Change

7K

9:00

EUR

CPI Flash Estimate y/y

2.4%

9:00

EUR

Unemployment Rate

11.1%

Aug 1

1st-8th

GBP

Halifax HPI m/m

1.0%

7:15

EUR

Spanish Manufacturing PMI

41.1

7:45

EUR

Italian Manufacturing PMI

44.6

8:30

GBP

Manufacturing PMI

48.6

Aug 2

7:00

EUR

Spanish Unemployment Change

-98.9K

7:15

CHF

Retail Sales y/y

6.2%

7:30

CHF

SVME PMI

48.1

8:30

GBP

Construction PMI

48.2

11:00

GBP

Asset Purchase Facility

375B

11:00

GBP

Official Bank Rate

0.50%

0.50%

11:45

EUR

Minimum Bid Rate

0.75%

0.75%

12:30

EUR

ECB Press Conference

Aug 3

8:30

GBP

Services PMI

51.3

9:00

EUR

Retail Sales m/m

0.6%

Government Bond Auctions

Date Time Country

Jul 31 00:30 Japan

Jul 31 09:30 Belgium

Aug 01 09:30 Germany

Aug 01 10:00 Norway

Aug 01 13:00 US

Aug 02 08:30 Spain

Click here to read GBP/USD Technical Analysis.

Originally posted here