By FXEmpire.com

Analysis and Recommendations:

The GBP/USD rose in today’s light trading session. The pair is at 1.5395 as the USD lost some momentum after Friday’s disastrous jobs and ISM reports. Safe haven traders moved quickly from the USD to gold, pushing up the price of gold to 1620 the largest one day jump this year. In celebration of the Queen’s Jubilee UK markets are closed to celebrate the 4 day holiday.

US Non-Farm Employment Change declined by 8,000 to 69,000 in last month as against previous level of 77,000 in April. But unemployment rate rose to 8.2 percent in May from 8.1 percent in April. Personal Spending rose by 0.3 percent in April with respect to 0.2 percent a month earlier.

US Final Manufacturing Purchasing Managers’ Index (PMI) was at 54-mark in May from 53.9-level in April. The Institute for Supply Management (ISM) Manufacturing PMI was at 53.5-mark in May compared to 54.8-level in previous month. Construction Spending remained unchanged at 0.3 percent in April.

In the last week, the US Dollar Index (DX) strengthened sharply on account of rising global economic woes. US equities lost more than 2 percent on Friday and this factor too boosted demand for the low yielding dollar.

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 4, 2012 actual v. forecast (virtually no eco data in Europe or the US today)

Date

Currency

Event

Actual

Forecast

Previous

Jun. 04

JPY

Monetary Base (YoY)

2.4%

0.2%

-0.3%

AUD

MI Inflation Gauge (MoM)

0.0%

0.3%

AUD

Company Gross Profits (QoQ)

-4.0%

-2.0%

-6.5%

AUD

ANZ Job Advertisements (MoM)

-2.40%

-0.80%

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

Date

Time

Currency

Forecast

Previous

Jun 5

9:00

EUR

Retail Sales m/m

0.3%

10:00

EUR

German Factory Orders m/m

2.2%

14:00

USD

ISM Non-Manufacturing PMI

53.5

Jun 6

6th-8th

GBP

Halifax HPI m/m

8:30

GBP

Construction PMI

55.8

10:00

EUR

German Industrial Production m/m

2.8%

11:45

EUR

Minimum Bid Rate

1.00%

1.00%

12:30

EUR

ECB Press Conference

12:30

USD

Revised Nonfarm Productivity q/q

-0.5%

14:30

USD

Crude Oil Inventories

18:00

USD

Beige Book

23:01

GBP

BRC Retail Sales Monitor y/y

-3.3%

Jun 7

7:00

CHF

Foreign Currency Reserves

235.6B

7:15

CHF

CPI m/m

0.1%

8:30

GBP

Services PMI

53.3

TBD

EUR

French 10-y Bond Auction

11:00

GBP

Asset Purchase Facility

325B

11:00

GBP

Official Bank Rate

0.50%

0.50%

TBD

GBP

MPC Rate Statement

12:30

USD

Unemployment Claims

383K

14:00

USD

Fed Chairman Bernanke Testifies

Jun 8

8:30

GBP

PPI Input m/m

-1.5%

8:30

GBP

Consumer Inflation Expectations

3.5%

TBD

GBP

10-y Bond Auction

12:30

USD

Trade Balance

-51.8B

14:00

USD

Fed Chairman Bernanke Testifies

Government Bond Auctions

Date Time Country

Jun 05 00:30 Japan

Jun 05 09:30 Belgium

Jun 05 14:30 Sweden

Jun 06 09:30 Germany

Jun 06 09:30 Portugal

Jun 06 14:30 UK

Jun 07 00:30 Japan

Jun 07 08:30 Spain

Jun 07 08:50 France

Jun 07 09:10 Sweden

Jun 07 15:00 US

Jun 08 10:00 Belgium

Jun 08 15:30 Italy

Click here to read GBP/USD Technical Analysis.

Originally posted here