The GBP/USD gave back some of its US dollar inspired gains to trade at 1.4704 holding on to a few points after housing and mortgage data disappointed
The GBP/USD gave back some of its US dollar inspired gains to trade at 1.4704 holding on to a few points after housing and mortgage data disappointed today. UK GDP missed expectations today along with mortgage approval but had very little effect on the pound as traders remain more focused on the June 23rd referendum. UK growth slowed to 0.4% in the first quarter of 2016, down from 0.6%, the Office for National Statistics reports. That’s in line with the first estimate, released last month. But the annual growth rate has been revised down to 2%, from 2.1% initially.
Business investment fell by 0.5% during the quarter, driven by “falls in non-residential building”, the ONS says. That may show that companies are more cautious about economic prospects and have been cutting back. That could be due to the recent turmoil in the financial markets, or the EU referendum.
However, gross fixed capital formation growth (another measure of corporate investment) did rise by 0.5% in January-March after shrinking in the previous three months.
The figures also show deterioration in Britain’s trade with the rest of the world.
Britain’s EU referendum is just four weeks away, and traders are getting nervous. The cost of hedging against wild swings in the value of the pound over the next month has jumped this morning. It hit its highest level since March 2009, in the aftermath of the financial crisis.
FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.
Upcoming Economic Events that you should be monitoring:
Friday, May 27, 2016
Cur. | Event | Actual | Forecast | Previous | |||
AUD | RBA Assist Gov Debelle Speaks | ||||||
JPY | National Core CPI (YoY) (Apr) | -0.4% | -0.3% | ||||
JPY | Tokyo Core CPI (YoY) (May) | -0.4% | -0.3% | ||||
USD | GDP (QoQ) (Q1) | 0.9% | 0.5% | ||||
USD | GDP Price Index (QoQ) (Q1) | 0.7% | 0.7% | ||||
USD | Michigan Consumer Expectations | 86.6 | 87.5 | ||||
USD | Michigan Consumer Sentiment (May) | 95.4 | 95.8 | ||||
USD | Fed Chair Yellen Speaks | ||||||
USD | Baker Hughes U.S. Rig Count | 318 |
Government Bond Auctions
Date Time Country Auction
May 26 11:10 Italy Announces details of bond auction
May 26 11:10 Italy Holds Zero-coupon/BTPei auction
May 26 17:20 Sweden Details of I/L auction on Jun 02
May 26 19:00 US Holds 7Yr Notes Auction
May 30 11:10 Italy Holds bond auction
Jun 01 10:30 Denmark Holds bond auction
Jun 01 11:30 Germany Eur 4bn Apr 2021 Bobl
Jun 01 11:30 UK 1.5% 2021 Gilt
Jun 01 17:20 Sweden Announces details of bond auction on Jun 08
Jun 02 10:30 Spain Holds bond auction
Jun 02 11:03 Sweden Holds I/L bond auction
Jun 02 11:50 France Holds bond auction