By FXEmpire.com
Analysis and Recommendations:
The GBP/USD closed a quiet day at 1.5698 close to its opening. Most of the major currencies went on the roller coast ride with the DI and the euro, on mildly positive market sentiment in early trading and turning negative on worries from Spain.
The pound followed a fourth weekly loss against the greenback, the longest stretch of losses since last September. The pound was hurt further when the economic data came in lower than expected, with retail sales dropping and GDP numbers also shrinking. The fall in the euro also put pressure on the pound, given the UK’s close links to the European region. The pound lost 0.97% for the week.
It was another week of losses for the pound. The pound declined for a fourth consecutive week against the dollar on renewed concerns of a slowdown in the economy. The Bank of England minutes last week show the it thought there was a case for resumption of the stimulus. This has added to the decline in the pound, and the dovish sentiment could weigh on the pound even in the coming weeks. The concerns in the Euro-zone are also adding pressure on the pound due to its over-dependence on Euro-zone for trade.
On the economic front, among major releases, PMI Manufacturing is expected to fall given the crisis in Europe and declining exports. This is expected to keep the pound under pressure. So, for the coming week, we could expect the pound to stay lower on economic concerns along with rising euro concerns.
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 28, 2012 actual v. forecast
|
May 28 |
AUD |
RBA Governor Stevens Speaks |
||
|
JPY |
CSPI (YoY) |
0.2% |
-0.1% |
-0.2% |
|
SEK |
Swedish Retail Sales (MoM) |
-0.20% |
0.10% |
0.10% |
|
SEK |
Swedish Trade Balance |
4.70B |
5.40B |
|
|
EUR |
Italian Business Confidence |
86.2 |
88.6 |
89.1 |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Previous |
|
|
May 29 |
All Day |
EUR |
German Prelim CPI m/m |
0.2% |
|
10:00 |
GBP |
CBI Realized Sales |
-6 |
|
|
13:00 |
USD |
S&P/CS Composite-20 HPI y/y |
-3.5% |
|
|
14:00 |
USD |
CB Consumer Confidence |
69.2 |
|
|
May 30 |
7:00 |
CHF |
KOF Economic Barometer |
0.40 |
|
8:00 |
EUR |
M3 Money Supply y/y |
3.2% |
|
|
8:30 |
GBP |
Net Lending to Individuals m/m |
1.4B |
|
|
14:00 |
USD |
Pending Home Sales m/m |
4.1% |
|
|
23:01 |
GBP |
GfK Consumer Confidence |
-31 |
Click here to read GBP/USD Technical Analysis.
Originally posted here
