GBP/USD Fundamental Analysis June 27, 2012, Forecast

Posted June 26, 2012 15:01 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Analysis and Recommendations:

The GBP/USD added small gains today, to move up to 1.5591. Unfortunately the overall outlook for the pair is fairly bearish; at least David Cameron was able to remove the UK from the EU disasters facing the markets.

Despite weaker public finance data and bearish comments from BoE Governor King regarding his outlook for the global economy. The UK’s deficit, which was wider than expected as a result of reduced tax receipts, adds to existing sovereign credit risk given that the UK remains on outlook negative from two of the three major rating agencies (albeit with a AAA rating from all).

Meanwhile, Governor King has expressed concern over the widening breadth of the economic slowdown, given deceleration in Asia and deterioration in US growth. King voted for additional asset purchases at the most recent MPC meeting in June, and it is becoming increasingly likely that a majority will succeed in expanding the asset purchase program at the next meeting in July.

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.

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

Date	Time	Currency	Event	Previous
Jun 27	All Day	EUR	German Prelim CPI m/m	-0.2%
	8:30	GBP	BBA Mortgage Approvals	32.4K
	10:00	GBP	CBI Realized Sales	21
	12:30	USD	Durable Goods Orders m/m	0.2%
	14:00	USD	Pending Home Sales m/m	-5.5%
	14:30	USD	Crude Oil Inventories
Jun 28	7:55	EUR	German Unemployment Change	0K
	8:30	GBP	Current Account	-8.5B
	8:30	GBP	BOE Credit Conditions Survey
	8:30	GBP	Final GDP q/q	-0.3%
	12:30	USD	Unemployment Claims
	12:30	USD	Final GDP q/q	1.9%
	23:01	GBP	GfK Consumer Confidence	-29
Jun 29	29th-4th	EUR	German Retail Sales m/m	0.6%
	6:45	EUR	French Consumer Spending m/m	0.6%
	7:00	CHF	KOF Economic Barometer	0.81
	8:00	EUR	M3 Money Supply y/y	2.5%
	9:00	EUR	CPI Flash Estimate y/y	2.4%
	12:30	USD	Core PCE Price Index m/m	0.1%
	12:30	USD	Personal Spending m/m	0.3%
	13:45	USD	Chicago PMI	52.7
	13:55	USD	Revised UoM Consumer Sentiment	74.1

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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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