GBP/USD Fundamental Analysis – January 6, 2016 – Forecast

Analysis and Recommendations:

The GBP/USD continued to decline against the strong US dollar. The pound eased 1.4678 down by 37 points.  The Bank of England convenes next week and everybody expects no change in rates. The big question is: will we have a unanimous vote for leaving the rates unchanged or will one member still support a hike. Recent figures from the UK and some dovish commentary from the BOE have sent rate hike expectations all the way to 2017.

The BOE was seen as raising rates after the Fed, but this notion faded out a few months ago.

Growth in Britain’s construction industry picked up in December from a seven-month low in November, helped by a rise in commercial building on the back of the country’s economic recovery, a survey published on Tuesday showed.

The Markit/CIPS UK Construction Purchasing Managers’ Index rose to 57.8 from 55.3, above the median forecast of 56.0 in a Reuter’s poll of economists.

The survey added to some other signs that overall economic growth might gain a bit of speed in the fourth quarter after slowing in the previous three-month period.

However, economists have noted contrasting signals from the PMI readings of the construction sector and data used in official growth figures.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

 

 

Upcoming Economic Events that you should be monitoring:

Wednesday, January 6, 2016

Government Bond Auctions

Date Time and Country

Jan 06 11:30 Germany Euro 5bn 0% Dec 2017 Schatz

Jan 06 n/a Netherlands Announces details of DSL auction on Jan 12

Jan 07 10:50 France Holds bond auction

Jan 07 11:30 UK GBP1.5bn 4% Jan 2060 Gilt

Jan 07 n/a US Announces details of 3-yr note auction on Jan 12

Jan 07 n/a US Announces details of 10-yr note auction on Jan 13

Jan 07 n/a US Announces details of 30-yr bond auction on Jan 14

Jan 08 17:20 Italy Announces details of BTP/

Jan 11 12:00 Norway Announces details of bond auction on Jan 13

Jan 12 11:00 Austria Holds bond auction

Jan 12 11:00 Netherlands Euro 1-1.5bn 2.5% 2033 DSL

Jan 12 11:30 UK 0.125% 2046 Inflation-linked Gilt

Jan 12 n/a UK Announces details of Gilt auction on Jan 20

Jan 12 19:00 US Holds 3-year note auction

Jan 13 11:05 Norway Holds bond auction

Jan 13 11:10 Italy Holds BTP

Jan 13 11:30 Germany Euro 5bn Feb 2026 Bund

Jan 13 19:00 US Holds 10-year note auction

Jan 14 10:30 Spain Auctions Bonos/Obligaciones (Linkers?)

Jan 14 19:00 US Holds 30-year bond auction

Jan 14 n/a US Announces details of 10-yr TIPS auction on Jan 21

Jan 18 11:00 Belgium Holds OLO auction