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GBP/USD Fundamental Analysis December 20, 2012, Forecast

By:
Barry Norman
Updated: Aug 21, 2015, 01:00 UTC

Analysis and Recommendations: The GBP/USD continued to climb heading for the 1.63 price level ahead of the new year. The pair is trading at 1.6284 after

GBP/USD Fundamental Analysis December 20, 2012, Forecast

GBP/USD Fundamental Analysis December 20, 2012, Forecast
GBP/USD Fundamental Analysis December 20, 2012, Forecast
Analysis and Recommendations:

The GBP/USD continued to climb heading for the 1.63 price level ahead of the new year. The pair is trading at 1.6284 after the release of the MPC meeting minutes showing that the bank is not inclined to add additional stimulus at this time. Sterling hit a three-month high against the dollar on demand from US and Middle East investors and could see further gains if US politicians soon resolve budget problems, traders said. Traders said US and Middle East investors bought sterling and sold the dollar in early trade. The dollar was under pressure as investors sold the greenback and bought assets and currencies linked to growth on expectations that US lawmakers will strike a deal on the budget. The US ‘fiscal cliff’, a combination of tax rises and spending cuts due to kick-in at the beginning of 2013 has kept the dollar broadly weaker against the euro and the pound in recent sessions. 

Minutes from the Bank of England’s Monetary Policy Committee showed policymakers expected the economy to remain flat in the near term but inflation to probably exceed 2 percent in the next year.

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 19, 2012 actual v. forecast

Date

Time

 

Currency

 

Importance

 

Event

Actual

 

Forecast

 

Previous

 

 

Dec. 19

09:00

 

EUR

 

 

 

German Ifo Business Climate Index 

102.4

 

102.0 

 

101.4 

 

 

 

09:00

 

EUR

 

 

 

German Current Assessment 

107.1

 

108.0 

 

108.1 

 

 

 

09:00

 

EUR

 

 

 

German Business Expectations 

97.9

 

96.3 

 

95.2 

 

 

 

09:30

 

GBP

 

 

 

MPC Meeting Minutes 

 

 

 

 

 

 

 

 

11:00

 

GBP

 

 

 

CBI Distributive Trades Survey 

19

 

25 

 

33 

 

 

 

13:30

 

USD

 

 

 

Building Permits 

0.899M

 

0.875M 

 

0.868M 

 

 

 

13:30

 

USD

 

 

 

Housing Starts 

0.861M

 

0.873M 

 

0.888M 

   

 

13:30

 

CAD

 

 

 

Wholesale Sales (MoM) 

0.9%

 

1.0% 

 

-1.5%

   

 

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

Date

Time

Currency

Event

Forecast

Previous

Dec. 20 

09:30

GBP

Retail Sales (MoM) 

0.3%

-0.8%

 

09:30

GBP

Retail Sales (YoY) 

1.5%

0.6%

Dec. 21

07:00

EUR

GfK German Consumer Climate 

5.9

5.9

 

09:30

GBP

Current Account 

-14.0B

-20.8B

 

09:30

GBP

GDP (QoQ) 

1.0%

1.0%

 

09:30

GBP

GDP (YoY) 

-0.1%

-0.1%

Government Bond Auction

Date Time Country 

Dec 20 10:30 UK 

Dec 20 16:30 Italy  

Dec 20 18:00 US 

Dec 21 16:30 Italy  

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