GBP/USD Fundamental Analysis, March 24, 2015 – Forecast

Analysis and Recommendations:

The GBP/USD dipped 44 points to 1.4910 after gathering momentum on Friday as the US dollar tumbled. The US dollar continued to weaken today, but traders in the UK are worried about the BoE rate decision indecision as well as the upcoming elections in May.  th next year’s general election on the horizon, British politicians are talking tougher on the issue of migrant workers. It will be the first election since the anti-immigration Independence Party (UKIP) emerged as a serious political player.

The latest opinion poll revealed that support for UKIP has reached a record high following Brussels’ recent effort to levy a mammoth £1.7 billion ($2.7 billion) extra charge on Britain. Cameron has been forced to adjust his policies to win back public support.

Cameron announced plans to reduce the number of low skilled migrant workers coming to the UK from other EU countries by limiting the number of national insurance numbers given to them. In the recent policy shift, he said EU migrants could now only claim benefits for a maximum of three months, down from six. These legislative changes, which apply to child tax credit, child benefits and job seeker’s allowance, will be implemented in November.

Cameron is likely to make a speech on immigration policies before Christmas, according to media reports.

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.

Today’s economic releases actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, March 24, 2015

Government Bond Auctions

Date Time Country

Mar 24 09:00 Holland Eur 5bn new Jul 2025 DSL auction via DDA

Mar 24 19:00 US Auctions 2-yr Notes

Mar 25 11:03 Sweden Holds bond auction

Mar 25 11:15 Norway Holds bond auction

Mar 25 17:30 Italy Announces details of BTP/CCTeu on 30 Mar

Mar 25 19:00 US Auctions 2-yr FRN, plus 5-yr Notes

Mar 26 11:10 Italy Auctions CTZ/BTPei

Mar 26 19:00 US Auctions 7-yr Notes