GBP/USD Fundamental Analysis June 1, 2012, Forecast

Analysis and Recommendations:

The GBP/USD closed the month trading at 1.5447 as it continued its decline on worries over the economic health of the UK. Ever since the IMF issued a warning to the BoE earlier this month, saying that the central bank needs to do more to pump up the economy, the GBP has lost steam. Mid month the pound was trading at 1.63 but was unable to sustain. Risk Aversion has also hurt as the US continues to mount strength with the dollar index trading at 83.00.

After yesterday’s significant drop today is calmer as GBPUSD climbed back above 1.55.but gave back gains as the greenback strengthened.  News flow was light, with most of the attention on potential BoE steps from here.

There was little eco data in the UK to end the month with no support for the sterling. Friday will be us UK PMI which could support the GBP. 

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 for May 31, 2012 actual v. forecast

 

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