GBP/USD Fundamental Analysis May 23, 2012, Forecast

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Updated: Jan 1, 2011, 00:00 GMT+00:00

Analysis and Recommendations: The GBP/USD declined to 1.5774. The continued strength of the USD is difficult for any of its partners to maintain any

GBP/USD Fundamental Analysis May 23, 2012, Forecast

Analysis and Recommendations:

The GBP/USD declined to 1.5774. The continued strength of the USD is difficult for any of its partners to maintain any power. Although recently markets have become concerned with the overall health of the UK economy and its proximity and expose to risks from Europe.

What little eco data that has been available has been fairly weak as the UK continues in a technical recession, while GBP is down 0.4 after softer than expected CPI

The OECD decreases its growth forecast and warns of the potential spillover effects of Europe, the IMF has strong words, and the IIF suggests that Spanish banking sector loan losses could be as high as €260bn, Fitch downgrades Japan to A+, and the IAEA and Iran agree on terms for inspection.

Across the pond, there was some positive data from the US, where the National Association of Realtors said Tuesday that sales rose to a seasonally adjusted annualized rate of 4.62 million, from a downwardly revised 4.47 million in March, analysts had expected 4.6m.

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 May 22, 2012 actual v. forecast

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