By FXEmpire.com
Analysis and Recommendations:
The GBP/USD climbed today, benefitting from the weakness in the USD. The DI, which was over 83.00 at this time last week is now trading close to 82, as the strength of the USD wanes on poor eco data and worries about the US recovery.
The UK trade balance report came in well under forecast at -10.1 billion, which limited moves by the pound. Sterling is almost unchanged from yesterday’s close following the announcement of funding programs from the UK. On Thursday evening, BoE Governor King announced several new measures to help reduce borrowing costs in the UK. These include both a ‘funding for lending’ program that would lower borrowing costs for banks that ‘expand or sustain’ their loans to nonfinancial sector borrowers in the UK and also the deployment of the Extended Collateral Term Repo Facility (announced last December) that will provide banks with liquidity for a term of 6 months, on an ongoing basis. Governor King also stated that these measures could be deployed in concert with additional QE, driving considerable weakness in GBP relative to its peers. Lastly, the release of weaker trade data had little impact on sterling given the market’s focus on the BoE’s announcement.
All eyes are focused on Greece, France and Egypt this weekend as the politic drama comes to a head.
Markets are expected to be very volatile on Monday and traders are positioning themselves before the weekend, many are withdrawing from the markets.
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 June 15, 2012 actual v. forecast
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jun. 15 |
JPY |
Interest Rate Decision |
0.10% |
0.10% |
0.10% |
|
GBP |
Trade Balance |
-10.1B |
-8.5B |
-8.7B |
|
|
EUR |
Employment Change (QoQ) |
-0.2% |
-0.2% |
-0.3% |
|
|
Manufacturing Sales (MoM) |
-0.80% |
1.00% |
1.90% |
||
|
USD |
NY Empire State Manufacturing Index |
2.3 |
13.0 |
17.1 |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jun 18 |
18th-22nd |
GBP |
45 |
44 |
|
|
Day 1 |
ALL |
||||
|
Jun 19 |
8:30 |
GBP |
3.0% |
||
|
9:00 |
EUR |
-2.4 |
|||
|
12:30 |
USD |
0.72M |
|||
|
12:30 |
USD |
0.72M |
|||
|
Day 2 |
ALL |
||||
|
Jun 20 |
6:00 |
EUR |
0.2% |
||
|
8:30 |
GBP |
-13.7K |
|||
|
8:30 |
GBP |
0-0-9 |
0-0-9 |
||
|
8:30 |
GBP |
8.2% |
|||
|
9:00 |
CHF |
-4.0 |
|||
|
14:30 |
USD |
-0.2M |
|||
|
16:30 |
USD |
||||
|
16:30 |
USD |
|
|
||
|
18:00 |
USD |
||||
|
18:15 |
USD |
||||
|
Jun 21 |
6:00 |
CHF |
1.33B |
||
|
7:00 |
EUR |
44.7 |
|||
|
7:00 |
EUR |
45.1 |
|||
|
7:15 |
CHF |
7.9% |
|||
|
7:30 |
EUR |
45.2 |
|||
|
7:30 |
EUR |
51.8 |
|||
|
8:00 |
EUR |
9.1B |
|||
|
8:00 |
EUR |
45.1 |
|||
|
8:00 |
EUR |
46.7 |
|||
|
8:30 |
GBP |
-2.3% |
|||
|
10:00 |
GBP |
-17 |
|||
|
12:30 |
USD |
386K |
|||
|
13:00 |
USD |
54.0 |
|||
|
14:00 |
USD |
4.62M |
|||
|
14:00 |
USD |
-5.8 |
|||
|
Jun 22 |
8:00 |
EUR |
106.9 |
||
|
All Day |
EUR |
||||
|
13:00 |
EUR |
-11.2 |
Click here for updated GBP/USD News.
Originally posted here
