GBP/USD Fundamental Analysis October 20, 2014 Forecast

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Updated: Aug 25, 2015, 01:00 UTC

Analysis and Recommendations: The GBP/USD added 17 points as the US dollar eased today to trade at 1.6105 but there was no economic data in the UK today.

GBP/USD Fundamental Analysis October 20, 2014 Forecast

Analysis and Recommendations:

The GBP/USD added 17 points as the US dollar eased today to trade at 1.6105 but there was no economic data in the UK today. The dollar steadied along with most major currencies on Friday as stock markets bounced after a sharp sell-off that convulsed global markets this week. Sterling was the standout among the major pairs, falling about a third of a percent after the Bank of England’s chief economist said it could hold off with a first rise in interest rates for longer than previously thought.

Investors’ next near-term focus was on a speech due to be made later on Friday by Federal Reserve chief Janet Yellen. The head of the St. Louis Federal Reserve Bank, James Bullard, steadied markets somewhat on Thursday by talking up the idea of the US central bank holding off on plans to end its bond-buying stimulus for the economy this month.

Sterling could fall much further against the US dollar if the UK’s current account deficit is not addressed, bond managers have said. The latest data from the Office for National Statistics shows the UK’s current account deficit widened once again in the three months to September and now stands at £23.1bn in Q2, beating the previous high of £22.8bn seen in 2013.

Sterling made a strong start against both the US dollar and euro this year, until fears over a ‘yes’ vote in the Scottish referendum marked a near-term top at just over $1.70.

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:

There are no data releases scheduled Friday in Asian or European markets, focus will be on Janet Yellen’s speech later today

Cur.	Event	Actual	Forecast	Previous
USD	Building Permits (Sep)		1.029M	1.003M
USD	Building Permits (MoM)		2.8%	-5.1%
USD	Fed Chair Yellen Speaks
USD	Housing Starts (MoM)		4.8%	-14.4%
USD	Housing Starts (Sep)		1.004M	0.956