GBP/USD Fundamental Analysis October 7, 2014 Forecast

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Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendations: The GBP/USD added 16 points as the greenback eased as traders rebalanced Friday’s drastic market reaction to the excellent

GBP/USD Fundamental Analysis October 7, 2014 Forecast

Analysis and Recommendations:

The GBP/USD added 16 points as the greenback eased as traders rebalanced Friday’s drastic market reaction to the excellent US nonfarm payroll report. The pound is trading at 1.5987. The greenback continues to rally part of the reason is heightened speculation that the U.S. Federal Reserve could hike interest rates next year earlier than expected. But analysts say the bigger story is the dramatically lower euro currency which has lost value amid deteriorating economic conditions and stimulus moves by the European Central Bank. The Bank of England will be meeting this week but traders are not expecting much.

Housing price in London are about to fall for the first time since 2009 next year as a lack of affordability and proposals for a so-called mansion tax deter buyers, the Centre for Economics and Business Research said. Values will slip 2.6 percent after surging 17 percent in 2014, the CEBR said in a statement today. Nationally, prices will decline 0.8 percent after rising 7.8 percent as the prospect of higher interest rates quells demand, it said.

The forecasts underscore signs of a loss of momentum in Britain’s housing market after record-low borrowing costs and improving confidence propelled prices to all-time highs. The pound’s appreciation will also hurt demand for London property by curbing purchases from overseas buyers, the CEBR said.

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
EUR	German Factory Orders	-5.7%	-2.5%	4.9%
CAD	Ivey PMI		53.0	50.9

Upcoming Economic Events that you should be monitoring:

Currency

JPY	Monetary Policy Statement
AUD	Cash Rate
AUD	RBA Rate Statement
JPY	BOJ Press Conference
CHF	Foreign Currency Reserves
GBP	Halifax HPI m/m
CHF	CPI m/m
CHF	Retail Sales y/y
GBP	Manufacturing Production m/m
GBP	BOE Credit Conditions Survey
CAD	Building Permits m/m
GBP	NIESR GDP Estimate
USD	JOLTS Job Openings