Analysis and Recommendations: The GBP/USD remained flat today, trading at 1.6163 closing the year close to the 1.62 range forecast for the year end. There
The GBP/USD remained flat today, trading at 1.6163 closing the year close to the 1.62 range forecast for the year end. There is no data or news from the UK but traders continue to worry about the UK economy. The US on the other hand is dealing with the US Fiscal Cliff negotiations which have reached an impasse. Most traders are selling off to book profits this year ahead of tax changes for 2013.
The U.S. Congress is scheduled to meet later today in a last- minute attempt to avoid the “fiscal cliff” — $600 billion worth of tax hikes and spending cuts due to kick in from Jan. 1, that could tip the world’s largest economy into recession.
On Sunday, Democratic and Republican leaders in the Senate remained at loggerheads in talks and this soured market sentiment and buoyed the dollar.
However, given that budget talks have been dragging on for months, that the fiscal measures will have only a gradual impact and that many investors had priced in very little chance of a deal by year end, strategists said a major sell-off in growth-linked currencies and assets on Wednesday was unlikely.
Our fundamental analysis will not be published tomorrow, as we celebrated the New Year’s holiday and global markets are shuttered. I would like to take this time to wish all of my readers and followers the best in the New Year… Here’s to profitable trading.
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 31, 2012 actual v. forecast
Date |
Time |
|
Currency |
|
Importance |
|
Event |
Actual |
|
Forecast |
|
Previous |
|
|
Dec. 31 |
00:30 |
|
AUD |
|
|
Private Sector Credit (MoM) |
0.0% |
|
0.3% |
|
0.1% |
|
||
|
01:45 |
|
CNY |
|
|
Chinese HSBC Manufacturing PMI |
51.50 |
|
50.90 |
|
50.90 |
|
||
|
02:00 |
|
SGD |
|
|
Singaporean Bank Landing (MoM) |
481.70B |
|
|
|
479.40B |
|
||
|
09:30 |
|
GBP |
|
|
Housing Equity Withdrawal (QoQ) |
-8.0B |
|
-9.1B |
|
-9.4B |
|||
|
10:00 |
|
EUR |
|
|
Greek Retail Sales (YoY) |
-18.10% |
|
|
|
-11.80% |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
Date |
Time |
Currency |
Event |
Forecast |
Previous |
Jan. 01 |
01:00 |
CNY |
51.00 |
50.60 |
|
Jan. 02 |
00:00 |
EUR |
0.7% |
-0.1% |
|
|
00:00 |
EUR |
1.9% |
1.9% |
|
|
08:00 |
CHF |
1.38 |
1.50 |
|
|
15:00 |
USD |
50.2 |
49.5 |
|
Jan. 03 |
08:00 |
CHF |
1.35 |
1.50 |
|
|
08:30 |
CHF |
48.5 |
48.5 |
|
|
08:55 |
EUR |
10K |
5K |
Upcoming Government Bond
Date Time Country
Thursday, January 5: France will auction an estimated €7-8 billion ($9.1-10.4 billion) in 10-year and other long-term bonds
Tuesday, January 10: Austria will auction €1.3 billion ($1.7 billion) in 5- and 10-year bonds
Thursday, January 12: Spanish 3- and 5-year bond auction
Friday, January 13: Italy will auction medium-long term bonds
Thursday, January 19: France will auction 5-year bonds
Thursday, January 19: Spanish 10-, 15-, and 30-year bond auction
Thursday, January 26: Italian long-term bond auction
Monday, January 30: Italian medium-long term bond auction
Monday, January 30: Belgian bond auction