GBP/USD Fundamental Analysis – August 4, 2015 – Forecast

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Published: Aug 3, 2015, 10:48 UTC

Analysis and Recommendations: The GBP/USD eased by 9 points matching the climb in the US dollar today. The pound is trading at 1.5618 showing little

GBP/USD Fundamental Analysis – August 4, 2015 – Forecast

Analysis and Recommendations:

The GBP/USD eased by 9 points matching the climb in the US dollar today. The pound is trading at 1.5618 showing little response to a better than expected manufacturing PMI report. UK manufacturing growth picked up in July, a survey has suggested, after a 26-month low in June.

But growth remained “near-stagnant”, Markit said in its monthly UK Purchasing Managers’ Index (PMI) for manufacturing.

The index rose to 51.9 in July, from 51.4 in June. A figure above 50 indicates expansion. However, it remained below the average of 54.3 the sector has had since April 2013.

Rob Dobson, senior economist at Markit, said: “Although an uptick in the headline PMI breaks the decelerating trend in UK manufacturing, growth remains near-stagnant and suggests that the sector is continuing to act as a drag on the economy.

“With the sterling-euro exchange rate still sapping export demand and constraining growth of total order inflows, its seems that we will again look to the service sector to sustain any semblance of reasonable economic growth in the third quarter.” Howard Archer, chief UK and European economist at IHS Global Insight said: “While slightly improved compared to June, the July purchasing managers’ survey broadly maintains the impression that UK manufacturers are still finding life very challenging as they are being held back particularly by weak foreign orders. “

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
	Canada – Civic Holiday
CNY	Caixin Manufacturing PMI (Jul)	47.8	48.3	48.2
EUR	German Manufacturing PMI (Jul)	51.8	51.5	51.5
GBP	Manufacturing PMI (Jul)	51.9	51.6	51.4

Upcoming Economic Events that you should be monitoring:

Tuesday, August 4, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Retail Sales (MoM) (Jun)		0.5%	0.3%
AUD	Interest Rate Decision (Aug)		2.00%	2.00%
GBP	Construction PMI (Jul)		58.4	58.1