The GBP/USD ended the week on a strong note at 1.4603 gaining 1.39% for the week supported by a weak US dollar and polls showing that the IN vote was
The GBP/USD ended the week on a strong note at 1.4603 gaining 1.39% for the week supported by a weak US dollar and polls showing that the IN vote was gaining more and more momentum ahead of the June 23rd referendum. UK GDP was in line with forecasts, while there was a positive reaction to a number of company results including Barclays and GlaxoSmithKline.
CNBC also predicts that Brexit fears are weighing on UK growth:
The UK economy is expected to post a sharp slowdown in growth in the first quarter amid concerns that a forthcoming vote on the country’s membership of the European Union is scaring investors and industry.
Market analysts believe that preliminary gross domestic product (GDP) estimates released on Wednesday morning will show a slowdown in the first quarter to 0.4 percent, down from 0.6 percent in the previous quarter.
Some analysts, such as those from Barclays and Pantheon Macroeconomics, thought the slowdown could be more pronounced, however, to 0.3%.
The anticipated slowdown has been attributed by all analysts to the “increasing EU referendum risk,” as Barclays’ analysts said in a note on Wednesday, and fears of a so-called “Brexit” should U.K. voters elect to leave the EU when a referendum is held on June 23.
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:
Time | Cur. | Event | Actual | Forecast | Previous | |||
Sunday, May 1, 2016 | ||||||||
CNY | Manufacturing PMI (Apr) | 50.4 | 50.2 | |||||
Monday, May 2, 2016 | ||||||||
United Kingdom – Early May Bank Holiday | ||||||||
China – Labor Day | ||||||||
CNY | Caixin Manufacturing PMI (Apr) | 49.7 | ||||||
EUR | German Manufacturing PMI (Apr) | 51.9 | 51.9 | |||||
USD | ISM Manufacturing PMI (Apr) | 51.5 | 51.8 | |||||
Tuesday, May 3, 2016 | ||||||||
Japan – Constitution Day | ||||||||
CNY | Caixin Manufacturing PMI (Apr) | 49.9 | 49.7 | |||||
AUD | Interest Rate Decision (May) | 2.00% | 2.00% | |||||
GBP | Manufacturing PMI (Apr) | 51.2 | 51.0 | |||||
Wednesday, May 4, 2016 | ||||||||
Japan – Greenery Day | ||||||||
NZD | Employment Change (QoQ) (Q1) | 0.9% | ||||||
GBP | Construction PMI (Apr) | 54.0 | 54.2 | |||||
USD | ADP Nonfarm Employment Change (Apr) | 200K | 200K | |||||
USD | ISM Non-Manufacturing PMI (Apr) | 54.6 | 54.5 | |||||
USD | Crude Oil Inventories | 1.999M | ||||||
Thursday, May 5, 2016 | ||||||||
Japan – Children’s Day | ||||||||
AUD | Retail Sales (MoM) (Mar) | 0.3% | ||||||
GBP | Services PMI (Apr) | 53.5 | 53.7 | |||||
Friday, May 6, 2016 | ||||||||
USD | Nonfarm Payrolls (Apr) | 200K | 215K | |||||
USD | Unemployment Rate (Apr) | 5.0% | 5.0% | |||||
CAD | Employment Change (Apr) | -1.5K | 40.6K | |||||
CAD | Ivey PMI (Apr) | 50.1 |
Upcoming Government Bond Auctions
Date Time Country
Mar 02 13:00 Norway Details of bond auction on Mar 04
May 04 11:05 Norway Holds bond auction
May 04 11:30 Germany Eur 4bn Apr 2021 Bobl
May 04 11:50 France Holds bond auction
May 04 17:20 Sweden Details of bond auction on May 11
May 05 10:30 Spain Holds bond auction
May 05 11:00 Austria Holds bond auction