GBP/USD Fundamental Analysis May 9, 2013 Forecast

Analysis and Recommendations:

The GBP/USD is beginning to position itself ahead of tomorrow’s Bank of England meeting, trading at 1.5498 gaining 14pips. Traders are unsure what to expect from Governor King at tomorrow’s meet. At the last meeting King recommended adding additional stimulus but was voted down. British retail sales plunged unexpectedly in April, hurt by an earlier Easter than usual this year, the British Retail Consortium said on Wednesday. On the other hand, house prices in April rose more than expected, Halifax said, leaving investors to grapple with a mixed picture about the economy.

Some are awaiting March industrial output data due on Thursday, to see if positive momentum generated from recent better-than-expected business surveys is sustained. Britain avoided a triple-dip recession last quarter, a factor that is likely to keep the Bank of England sidelined for another month.

The BoE’s Monetary Policy Committee starts a two-day meet on Wednesday and is expected to keep rates unchanged at historic lows with no changes planned to its asset-buying program.

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 8, 2013 actual v. forecast

 

Upcoming Economic Events that affect the CHF, EUR, GBP, CAD and USD

Upcoming Government Bond Auctions

Date Time Country 

May 09 08:30 Spain

May 09 17:00 US

May 10 09:10 Italy

May 10 09:10 Norway