By FXEmpire.com
Analysis and Recommendations:
The GBP/USD continues to show weakness trading at 1.5812. There is little in the way of eco data in the UK or the US today to really affect the markets. The jobless report and the Philly Fed were market neutral.
As an as expected Spanish GDP decline of 0.3%q/q in Q1; the beginning of a bank loan portfolio review in Spain; ongoing stories of potential bank runs in Greece, including a EUR700m bank deposit drop; an announcement from the ECB that they will stop accepting the collateral of some Greek banks (however these same banks can now turn to their federal central bank for liquidity); President Draghi’s comments that they will not compromise its principles to prevent a Greek exit; a suggestion that the ECB will not make any policy changes at the June meeting and will not make changes to the LTRO or SMP unless there is a new shock; speculation over what the May 23rd EU summit might yield.
The decline today was simply based on global sentiment and the power of the USD.
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 May 17, 2012 actual v. forecast
|
May 17 |
JPY |
GDP (QoQ) |
1.0% |
0.9% |
-0.2% |
|
JPY |
GDP Price Index (YoY) |
-1.2% |
-1.4% |
-1.8% |
|
|
JPY |
Industrial Production (MoM) |
1.3% |
1.1% |
1.0% |
|
|
Foreign Securities Purchases |
-2.08B |
9.34B |
12.54B |
||
|
USD |
Initial Jobless Claims |
370K |
365K |
370K |
|
|
CAD |
Wholesale Sales (MoM) |
0.4% |
0.4% |
1.5% |
|
|
USD |
Continuing Jobless Claims |
3265K |
3235K |
3247K |
|
|
USD |
Philadelphia Fed Manufacturing Index |
-5.8 |
10.0 |
8.5 |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
The calendar for the end of the week is very thin. There should be little eco data that will affect the markets
Government Bond Auctions
Date Time Country
May 21 09:10 Norway
May 21 09:30 Germany
May 21 10:00 Belgium
May 22 08:30 Holland
May 22 08:30 Spain
May 22 17:00 US
May 23 09:10 Sweden
May 23 09:30 Germany
May 23 14:30 Sweden
May 23 17:00 US
May 24 15:30 Italy
May 24 17:00 US
May 25 15:30 Italy
Click here for updated GBP/USD News.
Originally posted here
