GBP/USD Fundamental Analysis June 26, 2012, Forecast

By FXEmpire.com

Analysis and Recommendations:

The GBP/USD fell along with most of the USD trading partners today. The pair is at 1.5549. In a day void of eco data on both sides of the Atlantic, the markets have been about news flow, which has mostly come from the EU with the highlights being Spain, Greece and Italy.

Spain, submitted their formal bailout request, although the amount is open for discussion and Spain said it will be resolved before the July 9th EU meeting, it seems that Spain is trying to camouflage a true bailout with a request for a bank bailout.

Greece has publicly released their demands to remain in the EU, including additional funding to the tune of 20billion euros and longer terms and a change in austerity measures. This is going to be difficult for Germany to swallow.

Italy continues to keep to the shadows as their bond yields increase, but Monti, continues to deny the need for financial assistance.

Back in the UK the ongoing BoE conversation, over the last few weeks, the market has re-priced the risk of a third round of QE in the UK, highlighted again by a dovish interview in the FT with MPC member Miles today. Accordingly, though QE is likely to limit near-term upside it is unlikely to cause further GBP selling

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.

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

Date	Time	Currency	Event	Previous
Jun 26	8:30	GBP	Public Sector Net Borrowing	-18.8B
	13:00	USD	S&P/CS Composite-20 HPI y/y	-2.6%
	14:00	USD	CB Consumer Confidence	64.9
Jun 27	All Day	EUR	German Prelim CPI m/m	-0.2%
	8:30	GBP	BBA Mortgage Approvals	32.4K
	10:00	GBP	CBI Realized Sales	21
	12:30	USD	Durable Goods Orders m/m	0.2%
	14:00	USD	Pending Home Sales m/m	-5.5%
	14:30	USD	Crude Oil Inventories
Jun 28	7:55	EUR	German Unemployment Change	0K
	8:30	GBP	Current Account	-8.5B
	8:30	GBP	BOE Credit Conditions Survey
	8:30	GBP	Final GDP q/q	-0.3%
	12:30	USD	Unemployment Claims
	12:30	USD	Final GDP q/q	1.9%
	23:01	GBP	GfK Consumer Confidence	-29
Jun 29	29th-4th	EUR	German Retail Sales m/m	0.6%
	6:45	EUR	French Consumer Spending m/m	0.6%
	7:00	CHF	KOF Economic Barometer	0.81
	8:00	EUR	M3 Money Supply y/y	2.5%
	9:00	EUR	CPI Flash Estimate y/y	2.4%
	12:30	USD	Core PCE Price Index m/m	0.1%
	12:30	USD	Personal Spending m/m	0.3%
	13:45	USD	Chicago PMI	52.7
	13:55	USD	Revised UoM Consumer Sentiment	74.1

Click here for further GBP/USD Forecast.

Originally posted here