GBP/USD Fundamental Analysis – week of September 12, 2016 – Forecast

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Published: Sep 10, 2016, 07:13 UTC

The GBP/USD closed the week at 1.3268 after touching its highest level since Brexit as positive UK data continues to show the economy moving along nicely.

GBP/USD Fundamental Analysis – week of September 12, 2016 – Forecast

The GBP/USD closed the week at 1.3268 after touching its highest level since Brexit as positive UK data continues to show the economy moving along nicely. Comments from the BoE left pound traders a bit worrisome ahead of the bank meeting this week, but it was the rebound of the US dollar late on Friday that weighed heavily on the pound which ended the week down just 0.19%. The GBP is a strong sell ahead of the BoE meeting on Thursday.

Sterling hit a one-week low against the dollar on Friday and registered its first week of losses in four, as the dollar rallied broadly on revived expectations that U.S. interest rates will be hiked soon.

The pound went on a winning streak up to Tuesday, when it hit a seven-week high of $1.3445 after rallying more than 4 percent in the previous two weeks, leaving it more than 5 percent up from a three-decade low plumbed in July.

But it has since fallen around 1.5 percent, dampened by data showing UK manufacturing posting its biggest drop in a year and after Bank of England Governor Mark Carney kept the option of further monetary easing on the table.

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This Week’s Economic Events That You Should Be Monitoring:

Date	Country	Name	Volatility	Previous	Consensus
9/13/2016	GBP	Core Consumer Price Index	3	1.3	1.4
9/13/2016	GBP	Consumer Price Index (YoY)	3	0.6	0.7
9/13/2016	EUR	ECB President Draghi’s Speech	3
9/13/2016	EUR	ZEW Survey – Economic	3	4.6	6.7
9/14/2016	NZD	Gross Domestic Product (YoY)	3	2.8
9/15/2016	AUD	Employment Change	3	26.2	15
9/15/2016	AUD	Unemployment Rate	3	5.7	5.7
9/15/2016	CHF	SNB Interest Rate Decision	3	-0.75	-0.75
9/15/2016	CHF	SNB press conference	3
9/15/2016	GBP	BoE Asset Purchase Facility	3	435	435
9/15/2016	GBP	BoE Interest Rate Decision	3	0.25	0.25
9/15/2016	GBP	Monetary Policy Summary	3
9/15/2016	GBP	BOE MPC Vote Cut	3	9	0
9/15/2016	GBP	BOE MPC Vote Unchanged	3	0	9
9/15/2016	GBP	BOE MPC Vote Hike	3	0	0
9/15/2016	GBP	Bank of England Minutes	3
9/15/2016	USD	Retail Sales (MoM)	3	0	0
9/16/2016	USD	Consumer Price Index (YoY)	3	0.8	1
9/16/2016	USD	Consumer Price Index ECORE	3	2.2	2.2
9/16/2016	USD	Michigan Consumer Sentiment	3	89.8	91