GBP/USD Fundamental Analysis October 22, 2012 Forecast

Get Forex buy/sell signals directly to your email and by SMS.
To learn more click here

GBP/USD Fundamental Analysis October 22, 2012 Forecast

GBP/USD Fundamental Analysis October 22, 2012 Forecast

Analysis and Recommendations:

The GBP/USD finished the week at 1.6007. The USD strengthens on Friday as existing home sales reported at forecast and disappointment with the lack of action by the EU Summit. No announcements on Spain or Greece. While the sterling had come under pressure on comments from Bank of England monetary policy committee member David Miles who told the Guardian Britain needs a more expansionary monetary policy to steady inflation and boost sub-par economic growth.

That suggested that more quantitative easing could be in the offing. More QE is seen as negative for the pound as it increases supply of the currency.

Minutes of the last policy meeting released on Wednesday showed the BoE’s monetary policy committee was split on whether further stimulus was needed. That pushed the pound higher, but that momentum could be waning soon, traders said.

Focus will now switch to third-quarter gross domestic product estimates in the UK which will be released next week. Expectations have risen that the economy may have staged a reasonable recovery in the third quarter following three consecutive quarters of contraction, after a strong jobs report this week, although doubts remain given weak PMI surveys.

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 October 19, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Oct. 19

 

JPY

 

 

BoJ Governor Shirakawa Speaks 

 

 

 

 

 

 

 

 

 

CAD

 

 

Core CPI (MoM) 

0.2%

 

0.4% 

 

0.3% 

 

 

 

 

CAD

 

 

CPI (MoM) 

0.2%

 

0.3% 

 

0.2% 

 

 

 

 

CAD

 

 

CPI (YoY) 

1.2%

 

1.0% 

 

1.2% 

 

 

 

 

USD

 

 

Existing Home Sales 

4.75M

 

4.75M 

 

4.83M 

  

 

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

Date

Time

Currency

Event

Forecast

Previous

Oct. 24

07:58

EUR

French Manufacturing PMI 

 

42.7 

 

08:28

EUR

German Manufacturing PMI 

 

47.4 

 

09:00

EUR

German Ifo Business Climate Index 

101.0 

101.4 

 

09:00

EUR

German Current Assessment 

 

110.3 

 

09:00

EUR

German Business Expectations 

 

93.2 

 

11:00

GBP

CBI Industrial Trends Orders 

 

-8 

Government Bond Auction

Date Time Country 

Oct 22 09:10 Norway 

Oct 23 08:30 Spain 

Oct 23 14:30 UK 

Oct 23 17:00 US 

Oct 24 09:10 Sweden 

Oct 24 09:30 Germany 

Oct 24 14:30 Sweden 

Oct 24 15:30 Italy  

Oct 24 16:30 US 

Oct 25 00:30 Japan 

Oct 25 09:10 Sweden 

Oct 25 15:30 Italy  

Oct 25 17:00 US 

Oct 26 09:10 Italy

Want to read more articles like this one?
Enter your e-mail address and read FX Empire content directly from your inbox.
 
We value your privacy. Your e-mail address will not be shared.
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

  View all of FX Empire Analyst - Barry Norman's Articles    
Share Your Thoughts: Post a Comment


Your email address will not be published.