GBP/USD Fundamental Analysis – August 17, 2015 – Forecast

Analysis and Recommendations:

The GBP/USD was flat today with little data and nothing in the headlines as traders watched China’s official action into its currency pricing. The pound is trading at 1.5616. The fundamentals are beginning to suggest that support for the pound may have topped out in the near-term. Yesterday morning’s UK labour market data disappointed, revealing an increase in the total level of domestic joblessness to 1.85m during the three months to the end of June. A Bank of England interest rate hike now appears a long way off and economists forecast that the UK unit will trade with a neutral bias moving forward.

The greenback struggled to gain ground against any of the other sixteen most actively traded global currencies during yesterday’s session. The apparent pressing of the panic button from China’s policymakers has spooked the markets this week and investors are now factoring-in only a minority chance that the US Federal Reserve will be hiking its interest rate next month. Look out for tomorrow afternoon’s Michigan Sentiment Survey to provide the dollar with further direction

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:

 

Upcoming Economic Events that you should be monitoring:

Monday, August 17, 2015

Government Bond Auctions

Date Time Country

Aug 19 11:30 Germany Eur 5bn Sep 2017 Schatz

Aug 19 11:03 Sweden Holds bond auction

Aug 20 10:30 Spain Auctions Bonos/Obligaciones

Aug 20 11:30 UK Auctions 4.25% 2036 Gilt

Aug 21 17:30 Italy Announces details of CTZ/BTPei on 26 Aug