GBP/USD Fundamental Analysis July 27, 2012, Forecast

Posted July 26, 2012 14:54 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Analysis and Recommendations:

The GBP/USD climbed to 1.5695. As the US weakened after comments by the ECB supported the euro, sterling was able to gain momentum. Sterling is stronger, up 0.5% from yesterday’s close and a mid-performer against most of its peers. Movement in GBP over the next week is likely to be driven by broader market sentiment ahead of the August 1 PMI release, given the lack of tier one data, and EUR related movement should provide for considerable headline risk. Meanwhile, BoE Governor King has provided his assessment of the global economy stating that ‘at present [it] is rather far from vibrant’.

Prime Minister Cameron remarked that he was disappointed with yesterday’s GDP numbers. With the Olympics beginning tomorrow, markets should be distracted over the next few days.

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 July 26, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Jul. 26

KRW

South Korean GDP (QoQ)

0.4%

0.5%

0.9%

JPY

BoJ Governor Shirakawa Speaks

EUR

GfK German Consumer Climate

5.9

5.8

USD

Core Durable Goods Orders (MoM)

-1.1%

0.1%

0.8%

USD

Durable Goods Orders (MoM)

1.6%

0.4%

1.6%

USD

Initial Jobless Claims

353K

380K

388K

USD

Continuing Jobless Claims

3287K

3310K

3317K

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

Date	Time	Currency	Event	Previous
Jul 27	27th-31st	GBP	Nationwide HPI m/m	-0.6%
	All Day	EUR	German Prelim CPI m/m	-0.1%
	7:00	CHF	KOF Economic Barometer	1.16
	12:30	USD	Advance GDP q/q	1.9%
	13:55	USD	Revised UoM Consumer Sentiment	72.0

Government Bond Auctions

Date Time Country

Jul 27 09:10 Italy

Jul 27 17:00 US

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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