GBP/USD Fundamental Analysis – August 25, 2015 –Forecast

Analysis and Recommendations:

The GBP/USD soared 63 points on the back of the declining US dollar which is down 91 points so far today as traders worldwide went to risk off mode.  Major ructions in the global financial markets throughout the past week are forecast to have a major impact on several leading currency pairs during coming sessions.

Investors have priced-in a high percentage chance that the world’s premier central bank – the US Federal Reserve – will be hiking its headline interest rate before the end of 2015. The market whispers reached their peak during the second week of July when the US Dollar improved to its strongest level against the Pound Sterling since the middle part of the year. The Pound Sterling US Dollar exchange rate slumped to as low as 1.5330 at this time as Fed Chair Janet Yellen asserted that America’s rate of borrowing would be on its way upward for the first time since the 2008 / 09 global financial crisis, providing there was evidence of ‘continued improvement’ in the US jobs market.

Aug 24 Sterling fell to a two-week low against a basket of currencies on Monday as investors interpreted the steep fall in global stock markets as a signal the Bank of England will refrain from raising interest rates any time soon.

The pound was weakest against the euro, which was up 1 percent on the day and up 4 percent over the last four days, its biggest rally against sterling in over five years.

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:

Tuesday, August 25, 2015