GBP/USD Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

By:

Published: Feb 6, 2016, 06:14 UTC

Weekly Analysis and Recommendation: The GBP/USD saw a gain this week to trade at 1.4503 but gains were limited by Bank of England comments and Brexit.

GBP/USD Weekly Fundamental Analysis – February 8-12, 2016 -Forecast

Weekly Analysis and Recommendation:

The GBP/USD saw a gain this week to trade at 1.4503 but gains were limited by Bank of England comments and Brexit. Weakness in the US dollar helped the pound gain. The non-farm payrolls and other employment data released on Friday provided a mixed message as to the employment situation in the US, but the positive aspects of the numbers have led some to believe once again that the Fed may indeed raise interest rates further in 2016.

Sterling retreated from a one-month high against the dollar on Friday, hurt by a poll that showed that those campaigning for Britain to leave the European Union had taken a 9-point lead, triggering renewed anxiety among investors.

In the afternoon session, it lost a bit more ground against the dollar after a key jobs report showed a pickup in U.S. wages in January, suggesting greater inflation and keeping alive chances of a rate hike by the Federal Reserve this year.

Sentiment towards sterling was soured by a YouGov survey, taken in the two days after Prime Minister David Cameron set out his proposed changes for Britain’s relationship with the EU, represents the biggest lead for the “out” campaign since the referendum wording was agreed last September.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week:


Date	Currency		Forecast
Feb 7	JPY	Current Account	1.59T
Feb 8	CAD	Building Permits m/m
	USD	Mortgage Delinquencies
Feb 9	AUD	NAB Business Confidence
	GBP	Trade Balance	-10.4B
	USD	JOLTS Job Openings	5.54M
	AUD	Westpac Consumer Sentiment
Feb 10	GBP	Manufacturing Production m/m	0.0%
Feb 11	CAD	NHPI m/m	0.3%
	USD	Unemployment Claims	287K
Feb 12	AUD	Home Loans m/m	2.9%
	EUR	German Prelim GDP q/q	0.3%
	EUR	Flash GDP q/q	0.3%
	USD	Core Retail Sales m/m	0.0%
	USD	Retail Sales m/m	0.1%
	USD	Import Prices m/m	-1.4%
	USD	UoM Consumer Sentiment	92.6
Feb 13