Analysis and Recommendations: The GBP/USD eased down giving back a bit of yesterday’s gains to trade at 1.6116 as the greenback gained momentum ahead of
The GBP/USD eased down giving back a bit of yesterday’s gains to trade at 1.6116 as the greenback gained momentum ahead of the two day Fed meeting starting in a few hours. Sterling trades little changed versus dollar and euro. Late yesterday, BoE deputy governor and MPC member Shafik said she doesn’t see significant evidence of inflationary pressures and has set a high bar for raising rates. She sees mixed data, but looks to wages and unit labour costs as the most important once. Shafik is since summer MPC member and voted always with the majority. Her comments won’t have a major impact on sterling trading. Today, the UK eco calendar is empty.
The dollar was under some slight downward pressure, but moves were insignificant from a technical point of view. It seems that, despite a few interesting news items, investors are largely sidelined waiting the FOMC meeting that starts soon.
Minutes of its latest monetary policy meeting showed MPC members firmly against raising rates now, pointing to weak inflation pressure at home and a slowdown in the euro zone, Britain’s most important export market. Out of the MPC’s nine members, only Martin Weale and Ian McCafferty have so far voted to raise interest rates from their record low level of 0.5 percent.
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:
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
|
JPY |
Retail Sales (YoY) (Sep) |
2.3% |
0.6% |
1.2% |
|
|
|
USD |
Core Durable Goods |
|
0.5% |
0.4% |
|
|
|
USD |
Durable Goods Orders |
|
0.5% |
-18.4% |
|
|
|
USD |
S&P/CS HPI Composite – |
|
5.8% |
6.7% |
|
|
|
USD |
CB Con. Confidence |
|
87.0 |
86.0 |
Upcoming Economic Events that you should be monitoring:
Time |
Cur. |
Imp. |
Event |
Actual |
Forecast |
Previous |
|
|
JPY |
Industrial Production |
|
2.2% |
-1.9% |
|
|
|
NZD |
Business Confidence |
|
|
13.4% |
|
|
|
CAD |
RMPI (MoM) (Sep) |
|
-1.0% |
-2.2% |
|
|
|
USD |
FOMC Statement |
|
|
|
|
|
|
USD |
Fed Funds Target Rate |
|
0.25% |
0.25% |
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