By FXEmpire.com
Introduction: While the ranges are wider (and so should stops be), the lines are rather distinctive, especially towards the borders of the long term wide range. This pair makes for good trades, with the new austerity program implemented in the UK, the GBP is moving more on Fundamentals now.
- The interest rate differential between the Bank of England(BoE) and the Federal Reserve
- High yield and attractive growth in the UK drives GBP/USD higher
Weekly Analysis and Recommendation:
The GBP/USD gained on the USD towards the end of the week. The USD lost its momentum throughout the week, as investors turned to gold for their safe haven, leaving the greenback to dip after continued negative data began to worry traders that the US economy was stalled.
|
Date |
Open |
High |
Change % |
||
|
Jun 15, 2012 |
1.5715 |
1.5552 |
1.5729 |
1.5477 |
1.05% |
|
Jun 14, 2012 |
1.5552 |
1.5520 |
1.5564 |
1.5473 |
0.21% |
|
Jun 13, 2012 |
1.5520 |
1.5565 |
1.5598 |
1.5505 |
-0.29% |
|
Jun 12, 2012 |
1.5565 |
1.5483 |
1.5591 |
1.5455 |
0.53% |
|
Jun 11, 2012 |
1.5483 |
1.5534 |
1.5582 |
1.5462 |
-0.34% |
The continued poor eco reports made it more likely that the FOMC will offer some sort of monetary stimulus.
This week will be more about news flow on the Greek elections. The pound was also able to gain momentum after announcements of a cohesive plan between the UK government and the BoE, to offer additional stimulus, to aid the ailing economy.
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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.
.Major Economic data for the week of June 11 – 15 actual v. forecast for Euro, GPB, the Franc, and USD
|
Date |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jun 12 |
GBP |
Manufacturing Production m/m |
-0.7% |
0.0% |
0.9% |
|
Jun 13 |
USD |
Core Retail Sales m/m |
-0.4% |
0.1% |
-0.3% |
|
USD |
PPI m/m |
-1.0% |
-0.6% |
-0.2% |
|
|
USD |
Retail Sales m/m |
-0.2% |
-0.1% |
-0.2% |
|
|
Jun 14 |
CHF |
Libor Rate |
|
|
|
|
USD |
Core CPI m/m |
0.2% |
0.2% |
0.2% |
|
|
USD |
Unemployment Claims |
386K |
377K |
380K |
|
|
Jun 15 |
USD |
Prelim UoM Consumer Sentiment |
74.1 |
77.5 |
79.3 |
Historical:
Highest: 1.681 USD on Nov17, 2009.
Average: 1.5807 USD over this period
Lowest: 1.3506 USD on Jan 23, 2009
Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD
|
Date |
Time |
Currency |
Event |
Forecast |
Previous |
|
Jun 18 |
Day 1 |
ALL |
G20 Meetings |
||
|
Jun 19 |
8:30 |
GBP |
CPI y/y |
3.0% |
|
|
9:00 |
EUR |
ZEW Economic Sentiment |
-2.4 |
||
|
12:30 |
USD |
Building Permits |
0.72M |
||
|
Day 2 |
ALL |
G20 Meetings |
|||
|
Jun 20 |
8:30 |
GBP |
Claimant Count Change |
-13.7K |
|
|
8:30 |
GBP |
MPC Meeting Minutes |
0-0-9 |
0-0-9 |
|
|
16:30 |
USD |
FOMC Statement |
|||
|
18:00 |
USD |
FOMC Economic Projections |
|||
|
18:15 |
USD |
FOMC Press Conference |
|||
|
Jun 21 |
8:30 |
GBP |
Retail Sales m/m |
-2.3% |
|
|
12:30 |
USD |
Unemployment Claims |
386K |
||
|
14:00 |
USD |
Existing Home Sales |
4.62M |
||
|
14:00 |
USD |
Philly Fed Manufacturing Index |
-5.8 |
||
|
Jun 22 |
8:00 |
EUR |
German Ifo Business Climate |
106.9 |
Click here for further GBP/USD Forecast.
Originally posted here
