GBP/USD Fundamental Analysis July 4, 2012, Forecast

By FXEmpire.com

Analysis and Recommendations:

The GBP/USD is trading at 1.5675 as we wind down the day. US markets will have light volume on Tuesday afternoon and the markets are closed on Wednesday.

Sterling is close to flat, despite the release of an under 50 construction PMI report as markets look to Thursday’s BoE meeting. Expectations are for a ?50bn increase to the BoE’s asset purchase program, to ?375bn. BoE Governor King, along with MPC members Miles and Posen, had voted for a ?50bn increase at the previous meeting; however a majority of the MPC voted to maintain the size of the asset purchase program given uncertainty surrounding the Greek election outcome from mid-June. Weak domestic data over the past month (including yesterday’s sub-50 PMI) have generated additional dovish comments from members of the previous majority, increasing the likelihood of easing this week.

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 Releases actual v. forecast July 3, 2012 ( today was almost void of eco data )

Jul. 03	AUD	Building Approvals (MoM)	27.3%	5.1%	-7.6%
AUD	Interest Rate Decision	3.50%	3.50%	3.50%

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

Date	Time	Currency	Event	Forecast	Previous
Jul 4 Jul 5	8:00	EUR	Final Services PMI	46.8	46.8
	8:30	GBP	Services PMI	53.0	53.3
	9:00	EUR	Retail Sales m/m	0.2%	-1.0%
	10:00	EUR	German Factory Orders m/m	0.2%	-1.9%
	11:00	GBP	Official Bank Rate	0.50%	0.50%
	11:45	EUR	Minimum Bid Rate	0.75%	1.00%
	12:15	USD	ADP Non-Farm Employment Change	101K	133K
	12:30	USD	Unemployment Claims	385K	386K
	14:00	USD	ISM Non-Manufacturing PMI	53.1	53.7
	15:00	USD	Crude Oil Inventories	-0.1M
Jul 6	7:00	CHF	Foreign Currency Reserves	303.8B
	7:15	CHF	CPI m/m	-0.3%	0.0%
	8:30	GBP	PPI Input m/m	-2.1%	-2.5%
	10:00	EUR	German Industrial Production m/m	0.3%	-2.2%
	12:30	USD	Non-Farm Employment Change	92K	69K
	12:30	USD	Unemployment Rate	8.2%	8.2%

Click here a current GBP/USD Chart.

Originally posted here