GBP/USD Fundamental Analysis – November 11, 2015 – Forecast

Analysis and Recommendations:

The GBP/USD eased a few points today as the greenback gained but the UK currency is remaining stable after taking a huge tumbled on the dovish outlook and worries of the Bank of England included in the bank’s decision statement last Thursday and comments by Mark Carney after the meeting. The GBP is trading at 1.5105. The BoE is set to delay any monetary tightening of its own well into next year; many argue the pound can be expected to suffer further. Strategists from the currency market’s third biggest banking player, Barclays, made betting on the dollar against the pound their trade of the week.

Although the Bank of England is forecast to be the next major central bank to raise interest rates after the Fed, markets have pushed out their expectations of when UK rates will rise from their historic lows until late 2016.

BoE Governor Mark Carney signaled that he was in no hurry to raise interest rates, and flagged risks to UK growth from external developments.

A number of banks said that, after that message from Carney, they expected unemployment and wage numbers this week to be soft. Others point to broader risks from a complicated picture of high external deficits, booming house prices and poor underlying growth with which the bank has struggled over the past few years.

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:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, November 11, 2015

Government Bond Auctions

Date Time Country

Nov 09 13:00 Norway Details bond auction on 11 Nov

Nov 09 16:30 Italy Announces details of BTPs/CCTeu on 12 Nov

Nov 09 19:00 US Holds 3-year note auction

Nov 10 11:00 Holland Eur 2.0-3.0bn 0% Apr 2018 DSL

Nov 10 11:30 UK 0.125% 2058 I/L Gilt auction

Nov 10 19:00 US Holds 10-year note auction

Nov 11 11:03 Sweden Holds bond auction

Nov 11 11:30 Germany Eur 3bn 0.25% Oct 2020 Bobl

Nov 11 12:15 Norway Holds bond auction

Nov 12 11:10 Italy Auctions BTPs/CCTeus

Nov 12 11:30 UK 4.25% 2039 Gilt auction

Nov 12 19:00 US Holds 30-year bond auction

Nov 18 11:30 Germany New Eur 5bn Dec 2017 Schatz

Nov 18 10:30 UK 2% 2025 Gilt auction

Nov 18 10:30 Portugal Eur 1-1.25bn; bond auction

Nov 18 15:30 Sweden Announces details of Bond on 25 Nov

Nov 18 N/A Holland Announces details of Bond on 24 Nov

Nov 19 09:30 Spain Auctions Bonos/Obligaciones

Nov 19 10:50 France Auctions BTANs

Nov 19 11:50 France Auctions OATi

Nov 19 N/A US Holds 10-year TIPS auction

Nov 20 16:30 Italy Announces details of CTZ/BTPei on 25 Nov