GBP/USD Fundamental Forecast – August 24, 2016

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Published: Aug 23, 2016, 12:37 UTC

The GBP/USD gained 53 points as the US dollar eased. The pound is trading at 1.3188 ahead of UK GDP and consumer confidence reports later this week. The

GBP/USD Fundamental Forecast – August 24, 2016

The GBP/USD gained 53 points as the US dollar eased. The pound is trading at 1.3188 ahead of UK GDP and consumer confidence reports later this week. The pound sterling is stable this morning after rumors of when the actual Brexit will occur gave traders the confidence to jump back into the pound in the short term. Looking ahead this Friday the U.K. Gross Domestic Product will be released which should provide insight on the state of the economy.

Federal Reserve Vice Chairman Stanley Fischer in Colorado Sunday that raised expectations for the Fed to raise rates again this year. Fischer said he believes the economy is close to the Fed’s targets on inflation and employment which would eliminate policy barriers to another rate hike.

Economic data was uneventful and did little to interrupt an otherwise quiet session. The Chicago Fed national activity index improved to 0.27 in July from a downward revised 0.05 in June, beating expectations for a gain to 0.20.

Investors will closely monitor US preliminary manufacturing PMI data for August, slated to release later today. Yesterday, the GBP strengthened 0.47% versus the USD, to close at $1.3137. Meanwhile, in the US, Chicago Fed’s national economic activity index in July improved to a 12-month high.

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August 24, 2016

Country	Name	Volatility	Previous
NZD	Trade Balance (MoM)	2	127
NZD	Trade Balance (YoY)	2	-3.31
NZD	Exports	2	4.26
NZD	Imports	2	4.13
CHF	UBS Consumption Indicator	2	1.34
EUR	GDP w.d.a (YoY)	3	1.8
EUR	GDP s.a (QoQ)	3	0.4
EUR	GDP n.s.a (YoY)	3	3.1
USD	Housing Price Index (MoM)	2	0.2