GBP/USD Fundamental Analysis October 30, 2014 Forecast

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Updated: Aug 25, 2015, 07:00 UTC

Analysis and Recommendations: The GBP/USD eased a few pips on dovish comments from the Bank of England to trade at 1.6122. Prime Minister David Cameron

GBP/USD Fundamental Analysis October 30, 2014 Forecast

Analysis and Recommendations:

The GBP/USD eased a few pips on dovish comments from the Bank of England to trade at 1.6122. Prime Minister David Cameron could come under pressure to move towards a more anti-European platform ahead of next year’s general election if his party loses a by-election on Nov 20, called following the defection of a lawmaker from Cameron’s Conservative Party to the Eurosceptic UKIP.

Sterling edged down against the dollar and euro on Tuesday, after a Bank of England policymaker said the central bank would need to see more signs of price pressures building before they begin to increase interest rates.

In a newspaper interview on Monday evening, BoE Deputy Governor Shafik said – in her most explicit comments on monetary policy yet – that she saw “no significant evidence” that price pressures were mounting in the British economy and that slack remained in the labour market.

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
JPY	Industrial Production	2.7%	2.2%	-1.9%
NZD	Business Confidence	26.5%		13.4%
CAD	RMPI (MoM) (Sep)		-1.0%	-2.2%
USD	FOMC Statement
USD	Fed Funds Target Rate		0.25%	0.25%

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	RBNZ Rate Statement
AUD	HIA New Home Sales			3.3%
GBP	Nationwide HPI (MoM)		0.3%	-0.2%
GBP	MPC Member Cunliffe
EUR	Spanish GDP (QoQ)		0.5%	0.6%
EUR	German Unemployment		5K	13K
EUR	German Unemployment		6.7%	6.7%
USD	GDP (QoQ) (Q3)		3.0%	4.6%
USD	GDP Price Index (QoQ)		2.0%	2.1%
USD	Initial Jobless Claims		283K	283K
USD	Fed Chair Yellen
EUR	German CPI (MoM)		-0.1%	0.0%