GBP/USD Fundamental Analysis December 12, 2012, Forecast

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Updated: Aug 21, 2015, 00:00 UTC

Analysis and Recommendations: The GBP/USD traded up today on a weak US dollar. The pair is trading at 1.6097 remaining in a tight range just below the

GBP/USD Fundamental Analysis December 12, 2012, Forecast

Analysis and Recommendations:

The GBP/USD traded up today on a weak US dollar. The pair is trading at 1.6097 remaining in a tight range just below the 1.61 level. There was little in the way of eco data in the UK, except for a negative House Price Balance report which came in well below expectations. The US dollar weakened as the FOMC two day meeting began today, with traders expecting continue monetary easing from the Feds which lowers the value of the USD.

Sterling could also come under pressure when the officials from the UK’s Office of Budgetary Responsibility give evidence to a parliamentary committee on the government’s mid-year budget statement later in the session. Finance minister George Osborne downgraded growth forecasts and said the country will miss debt-cutting goals in his Autumn Statement last week, raising concerns the UK will lose its prized AAA credit rating.

A speech from Bank of England governor Mervyn King in New York on Monday, in which he warned that too many countries were trying to weaken their currencies, was unlikely to impact the price of sterling.

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.

Economic Data December 11, 2012 actual v. forecast

Date	Currency	Event	Actual	Forecast	Previous
Dec. 11	GBP	RICS House Price Balance	-9%	-7%	-7%
	AUD	NAB Business Confidence	-9		-1
	EUR	French Non-Farm Payrolls (QoQ)	-0.3%	-0.3%	-0.3%
	INR	Indian Trade Balance	-19.3B	-19.1B	20.9B
	ZAR	South African Retail Sales (YoY)	1.00%	4.00%	4.70%
	HUF	Hungarian CPI (YoY)	5.2%	5.4%	6.0%
	EUR	German ZEW Economic Sentiment	6.9	-12.0	-15.7
	EUR	ZEW Economic Sentiment	7.6	0.1	-2.6
	CAD	Trade Balance	-0.2B	-1.0B	-1.0B
	USD	Trade Balance	-42.2B	-42.6B	-40.3B

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date	Time	Currency	Event	Forecast	Previous
Dec. 12	07:00	EUR	German CPI (MoM)	-0.1%	-0.1%
	07:00	EUR	German CPI (YoY)	1.9%	1.9%
	07:45	EUR	French CPI (MoM)		0.1%
	09:30	GBP	Average Earnings Index +Bonus	1.9%	1.8%
	09:30	GBP	Claimant Count Change	7.0K	10.1K
	10:00	EUR	Industrial Production (MoM)	0.2%	-2.5%
	13:30	USD	Import Price Index (MoM)	-0.5%	0.5%
	19:00	USD	Federal Budget Balance	-147.5B	-120.0B
Dec. 13	08:15	CHF	PPI (MoM)	-0.3%	-0.1%
	11:00	GBP	CBI Industrial Trends Orders	-16	-21
Dec. 14	07:58	EUR	French Manufacturing PMI	45.0	44.5
	08:28	EUR	German Manufacturing PMI	47.2	46.8
	10:00	EUR	CPI (YoY)	2.2%	2.2%
	10:00	EUR	Core CPI (YoY)		1.5%