GBP/USD Fundamental Analysis December 25, 2012, Forecast

Analysis and Recommendations:

The GBP/USD is trading at 1.6170 trading flat today.  Sterling was steady in thin trading on Monday, with lingering doubts over a UK recovery likely to keep alive the chances of more monetary easing in the New Year that would limit any gains for the pound. Uncertainty over the US budget talks was also likely to support inflows into the more liquid US dollar in the near term, traders said. The White House on Friday tried to rescue the stalled talks after an alternative Republican plan imploded in Congress. But little headway was made as lawmakers and President Barack Obama left Washington for Christmas. 

Obama and Republican House of Representatives Speaker John Boehner, the two key negotiators, are out of town for the holidays, and Congress is in recess and will have only a few days left to act before Jan. 1.

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 24, 2012 actual v. forecast

There were no top tier economic events on Monday as global markets closed early for the Christmas holiday. Japanese markets are closed all day for a regional holiday.

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

Global markets are closed for the Christmas Holiday; many will reopen on Wednesday while some countries are out for additional days. There is no eco data on the calendar for December 25^th. We will not print any fundamental analysis on Christmas day and will return on December 26^th. I would like to wish all of my readers an enjoyable holiday season.

Government Bond Auction

Date Time Country 

Dec 26 01:30 Japan 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy