GBP/USD Fundamental Analysis – August 13, 2015 – Forecast

By:

Published: Aug 12, 2015, 12:47 UTC

Analysis and Recommendations: The GBP/USD gained 20 points against the tumbling dollar as traders reviewed today’s jobs data. Average wages and bonuses

GBP/USD Fundamental Analysis – August 13, 2015 – Forecast

Analysis and Recommendations:

The GBP/USD gained 20 points against the tumbling dollar as traders reviewed today’s jobs data. Average wages and bonuses fell much lower than expected. The pound was trading at 1.5591. Sterling hit a one-month trough against a broadly higher euro on Wednesday, after data showed British wage growth slowed more than expected to hit its lowest in three months in June.

Growth in average weekly earnings in the three months to June fell to 2.4 per cent on the year, slowing down from 3.2 per cent in the three months to May and well below economists’ forecasts of 2.8 per cent in a Reuter’s poll.

Sterling rose 1.9 per cent against the Chinese yuan on Tuesday, to hit a 10-month high after China’s central bank (PBOC) devalued the currency to try to make exports more competitive.

PBOC said the near 2 per cent devaluation of the yuan against the dollar was a one-off move, and it also switched to a more market-determined benchmark for the currency’s daily trading band.

Traders said some of the investments in the Chinese yuan that were made by selling low-yielding euros and pounds were being unwound, helping both edge up against the dollar.

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 up to the data analysis and information in our weekly reports.

Today’s economic releases:

Cur.	Event	Actual		Forecast	Previous
USD	API Weekly Crude Oil Stock	-0.847M	-1.800M		-2.400M
JPY	Monetary Policy Meeting Minutes
AUD	Westpac Consumer Sentiment (Aug)	7.8%			-3.2%
AUD	Wage Price Index (QoQ) (Q2)	0.6%	0.6%		0.5%
JPY	Industrial Production (MoM) (Jun)	1.1%	0.8%		0.8%
JPY	Tertiary Industry Activity Index	0.3%	0.1%		-0.7%
CNY	Fixed Asset Investment (YoY) (Jul)	11.2%	11.5%		11.4%
CNY	Industrial Production (YoY) (Jul)	6.0%	6.6%		6.8%
GBP	Average Earnings Index +Bonus (Jun)	2.4%	2.8%		3.2%
GBP	Claimant Count Change (Jul)	-4.9K	1.5K		0.2K
GBP	Unemployment Rate (Jun)	5.6%	5.6%		5.6%
EUR	Industrial Production (MoM) (Jun)	-0.4%	-0.2%		-0.4%

Upcoming Economic Events that you should be monitoring:

Friday, August 14, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	Core Retail Sales (QoQ)		0.7%	2.9%
EUR	German GDP (QoQ) (Q2)		0.5%	0.3%
EUR	Core CPI (YoY) (Jul)		1.0%	1.0%
EUR	CPI (MoM) (Jul)		-0.6%	0.0%
EUR	GDP (QoQ) (Q2)		0.4%	0.4%
USD	PPI (MoM) (Jul)		0.1%	0.4%
CAD	Manufacturing Sales (MoM) (Jun)		2.1%	0.1%
USD	Industrial Production (MoM) (Jul)		0.3%	0.3%
USD	Michigan Consumer Sentiment (Aug)		93.5	93.1