GBP/USD Fundamental Analysis December 11, 2014 Forecast

Analysis and Recommendations:

The GBP/USD recovered 3 points as traders reviewed the trade balance data which showed a significant drop in exports to the Eurozone but a climb in exports to elsewhere. The pound is trading at 1.5671.  The ONS said trade would represent less of a drag in the final reading of economic growth because of revisions to data from previous months, but said it had not yet calculated what the difference would be.

Britain’s goods trade deficit narrowed in October to its lowest level in seven months, helped by lower fuel imports and a slight rise in exports, official data showed today.  The Office for National Statistics said the deficit shrank slightly less than expected to 9.620 billion pounds from 10.506 billion pounds in September, when a rise in oil helped to widen the shortfall.

IHS Global Insight chief UK economist Howard Archer said October’s improvement had boosted hopes it could make a “rare positive contribution to UK GDP growth in the fourth quarter”.

Britain’s economy still looks on course to expand at a strong pace in 2015, but raising interest rates now would pose a “huge risk” to its recovery, the British Chambers of Commerce said on Wednesday.

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 actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Thursday, December 11th

Government Bond Auction

Date Time Country Auction

Dec 11 12:10 Italy BTP/CCTeu auctions – CANCELLED

Dec 11 12:30 UK Auctions 0.75% 2034 I/L Gilt

Dec 11 20:00 US Announces 5-yr TIPS sale

Dec 11 20:00 US Auctions 30-yr Bonds