GBP/USD Fundamental Analysis October 28, 2014 Forecast

Analysis and Recommendations:

The GBP/USD is trading at 1.6106 against a weaker US dollar. The ECB announced the results of the bank stress test and there were no UK banks on the list. The Bank of England also conducted its own stress test and every major bank passed with Lloyd’s being the closest to failing. Friday, the focus for sterling trading was on the advance reading of the UK Q3 GDP. However, growth was reported exactly as expected. UK economic activity expanded 0.7% Q/Q and 3.0% Y/Y. Sterling gained a few ticks against the euro and the dollar after the report. Cable returned to the 1.6090 area. Investors apparently feared a negative surprise. However, the move had no strong legs and was soon reversed. In the afternoon session, sterling did well and eked out some gains against both euro and dollar. The pound has dropped as much as 7.7 percent from the July high, after rising 14 percent against the dollar in the previous 12 months, the most among major currencies. The median estimate among analysts surveyed by Bloomberg News is for the British currency to end the year at $1.62.

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:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Oct 28 12:10 Italy BOT auction

Oct 28 19:00 US 2Y Note auction

Oct 29 12:03 Sweden Bond auction

Oct 29 12:30 Germany Eur 4.0bn Aug 2024 Bund auction

Oct 29 17:30 US 2Y FRN auction

Oct 29 19:00 US 5Y Note auction

Oct 30 12:10 Italy BTP/CCTeu auctions

Oct 30 19:00 US 7Y Note auction