By FX Empire.com

Economic Events: (GMT)

08:00 GBP Halifax House Price Index (MoM) 0.1% 0.6%

The Halifax House Price Index measures the change in the price of homes and properties financed by Halifax Bank of Scotland (HBOS), one of the U.K.’s largest mortgage lenders. It is a leading indicator of health in the housing sector.

08:15 CHF CPI (MoM)

The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.

08:15 CHF Retail Sales (YoY)

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

09:30 GBP Services PMI

The Services Purchasing Managers’ Index (PMI) measures the activity level of purchasing managers in the services sector. A reading above 50 indicates expansion in the sector; a reading below 50 indicates contraction. Traders watch these surveys closely as purchasing managers usually have early access to data about their company’s performance, which can be a leading indicator of overall economic performance.

10:00 EUR Retail Sales (MoM)

Retail Sales measure the change in the total value of inflation-adjusted sales at the retail level. It is the foremost indicator of consumer spending, which accounts for the majority of overall economic activity.

15:00 USD ISM Non-Manufacturing Index

The Institute of Supply Management (ISM) Non-Manufacturing Purchasing Managers’ Index (PMI) (also known as the ISM Services PMI ) rates the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories. The data is compiled from a survey of approximately 400 purchasing managers in the non-manufacturing sector. On the index, a level above 50 indicates expansion; below indicates contraction.

GBP/USD Fundamental Analysis March 5, 2012, Forecast

GBP/USD Fundamental Analysis March 5, 2012, Forecast

Analysis and Recommendations:

The GBP/USD is currently 1.5845 down as U.S. dollar rose 0.4% against major rivals, pressuring prices of commodities that are bench-marked in the currency.

The UK construction sector saw activity rise sharply in February, with the Markit/CIPS construction headline February activity index spiking to 54.3 from 51.4.

The data, released by Reuters, shows construction activity accelerating seeing its 14th consecutive monthly expansion. Employment in the construction sector, however, declined despite growth in new business and output.

The 54.3 number was the highest since March 2011 and new business growth was the fastest in 21 months. While employment fell, which Markit reported was due to reorganizations in some companies, the decline was only marginal.

Manufacturing, came in at 51.2, down from 52.0 in January, with pace of expansion easing. The manufacturing survey also found a marked rise in pipeline inflation, with input costs seeing the second sharpest month-on-month rise in the survey’s history.

On Friday the Office for National Statistics also published data for new construction orders, which highlighted the decline in orders in 2011.

The ONS figures showed a 2.5% quarterly fall in new orders in the fourth quarter, with a very sharp rise, of 41.6%, in infrastructure orders offset by a 26.6% fall in public housing orders.

A very quiet Friday for Economic Data: actual v. forecast

NZD

ANZ Commodity Price Index (MoM)

0.0%

1.1%

EUR

German Retail Sales (MoM)

-1.6%

0.5%

0.1%

GBP

Construction PMI

54.3

51.3

51.4

EUR

PPI (MoM)

0.7%

0.5%

-0.2%

CAD

GDP (MoM)

0.4%

0.3%

-0.1%

Sovereign Bond Auction Schedule

Mar 05 10:10 Norway Bond auction

Mar 06 10:10 Greece Auctions 6M T-bills

Mar 06 10:15 Austria Bond auction

Mar 06 10.30 UK Auctions 0.75% 2034 I/L Gilt

Mar 06 15:30 UK Details gilt auction on Mar 15

Mar 07 10:10 Sweden Nominal bond auction

Mar 07 10:30 Germany Eur 4.0bn Feb 2017 Bobl

Mar 07 10.30 UK Auctions new Sep 2017 conventional Gilt

Mar 08 16:00 US

Announces auctions of 3Y Notes on Mar 12, 10Y Notes on Mar

13 & 30Y Bonds on Mar 14

Mar 08 16:30 Italy Details BOT auction on Mar 13

Mar 09 11:00 Belgium OLO mini bond auction

Mar 09 16:30 Italy Details BTP/CCTeu on Mar 14

Originally posted here