Advertisement
Advertisement

GBP/USD Forecast Dec. 26-30, 2011, Fundamental Analysis

By:
FX Empire Editorial Board
Updated: Mar 5, 2019, 13:23 UTC

In the week ended Dec. 23, the GBP/USD showed a rise on the improvement in data from the U.K. and U.S. as well as the latest developments in the euro zone

GBP/USD Forecast Dec. 26-30, 2011, Fundamental Analysis

GBP/USD Forecast Dec. 26-30, 2011, Fundamental Analysis
GBP/USD Forecast Dec. 26-30, 2011, Fundamental Analysis
In the week ended Dec. 23, the GBP/USD showed a rise on the improvement in data from the U.K. and U.S. as well as the latest developments in the euro zone which caused investors to become long on the pound and high-yielding currencies at the expense of refuges.

U.K. budget deficit narrowed in Nov. and 3q GDP was upwardly revised, providing some hopes theU.K.is on the right track. On the other hand, data from the U.S. also showed progress except for 3q GDP which was downwardly revised.

The main focus also remained on the latest developments from the euro area. The main actions taken in addition to news released last week caused an improvement in the sentiment. German business confidence rose for the second month in Dec., a Spanish bond selling witnessed high demand and low yield, European finance minister agreed to provide loans to IMF to fight debt crisis and the ECB European banks offered higher-than-estimated three-year funds.

This week, due to Christmas holidays there will be mainly few data from the U.K. and U.S. where the trading volume is expected to be very low.

The release of the data this week will be as follows:

Monday Dec. 26:

Both economies do not have fundamentals where the market will be closed due to holidays.

Tuesday Dec. 27:

While the U.K. lacks fundamentals, the U.S., will release S&P/caseShiller for the month of Oct., due at 14:00 GMT, which is predicted to record -0.20% from the prior -0.50%, followed by consumer confidence, available at 15:00 GMT, where analysts forecasts a soar to 58.5 in Dec. from 56.0 a month earlier.

Wednesday Dec. 28:

Both economies lack fundamentals and therefore the pair is predicted to follow the general sentiment in the market.

Thursday Dec. 29:

The U.S. economy will release initial jobless claims for the week ended Dec. 24 and continuing claims for the week ended Dec. 16, where they will be available at 13:30 GMT. At 14:45 GMT, Chicago purchasing manager is estimated to retreat to 60.2 in Dec. from the previous 62.6. 15 minutes later, pending home sales for Nov. will signal 1.8% advance compared with the preceding 10.4% rise.

Friday Dec. 30:

The week ends with the release of no data from the U.S., while the U.K will release low significance fundamentals which are nationwide house prices for Dec. and BoE housing equity withdrawal for the third quarter at 07:00 GMT and 09:30 GMT respectively.

About the Author

Did you find this article useful?

Advertisement