GBP/USD Fundamental Analysis November 26, 2013 Forecast

Analysis and Recommendations:

The GBP/USD fell by 29 points to trade at 1.6195 as the US dollar gained and BBA mortgage approvals missed expectations. BoE’s report on the mortgage approvals showed a surge in September, beating estimates to 66,735, higher than August’s number of 63,396. The month of September marked the highest number of mortgage approvals since February 2008. In light of this, the latest October mortgage approval does seem to be in-line with the steady pace. BoE’s Carney said that the Central bank was closely monitoring the housing price movements and that the bank is vigilant to any signs of acceleration in lending practices. The BoE, as a supervisor of banks and building societies, is able to tighten its grip if needed.

The Pound slipped from its monthly highs earlier today after the mortgage data came out weaker than expected. At the time of writing, the Pound was -0.15% lower compared to Friday’s close. With not much of fundamental to go by for the rest of the day, volatility might be weak. Later today, the US will be publishing its monthly pending home sales data, which is expected to improve after last month’s dismal -5.6%.

Wednesday is by far the most significant day of the week for the pound and the UK economy. We release our GDP figures which is a measure of how our economy is growing. Recent figures of 0.8% for the last quarter have been impressive and show we are rapidly moving away from the long drawn out recession.

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 November 25, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Nov 26 09:10 Holland

Nov 26 09:30 Spain

Nov 26 10:10 Italy

Nov 26 12:00 Norway

Nov 26 18:00 US

Nov 27 10:10 Italy

Nov 27 10:10 Sweden

Nov 27 10:30 Germany

Nov 27 18:00 US

Nov 28 10:10 Italy

Nov 28 10:30 UK