GBP/USD Fundamental Analysis September 24, 2012 Forecast

Analysis and Recommendations:

The GBP/USD skyrocketed today, almost breaking the 1.63 price and holding steady at 1.6268 as the US dollar continued to weaken and on positive eco data. The Public Sector Net Borrowing came in well below forecast, showing that austerity measures adopted in the UK are working. The UK public sector net borrowing data came in lower than expected, at £14.4bn vs £15.0bn consensus, leaving the government running about £10bn behind target at this point.

Sterling is stronger, up 0.4% from yesterday’s close, in line with EUR, as market sentiment is boosted by developments regarding Spain.  Domestically, government borrowing has increased, with the UK posting its largest monthly deficit for August on record.  BoE Governor King appears comfortable with these developments, attributing the shortfall to economic contraction rather than any change in fiscal policy.  However, the increase in borrowing highlights one of the major risks for GBP, given that both Moody’s and Fitch maintain a negative outlook on the UK’s AAA rating

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.

Economic Data September 21, 2012 actual v. forecast

 

Upcoming Economic Events that affect the EUR ( there are no USD or CAD events )

Government Bond Auction

Date Time Country 

Sep 24 09:10 Norway 

Sep 24 09:30 Germany 

Sep 24 10:00 Belgium 

Sep 24 15:30 Italy  

Sep 25 08:30 Holland 

Sep 25 08:30 Spain 

Sep 25 09:10 Italy  

Sep 25 14:30 UK 

Sep 25 17:00 US 

Sep 26 09:10 Italy  

Sep 26 09:10 Sweden 

Sep 26 09:00 Germany 

Sep 26 14:30 Sweden 

Sep 26 17:00 US 

Sep 27 00:30 Japan 

Sep 27 09:10 Italy  

Sep 27 17:00 US