GBP/USD Weekly Fundamental Analysis, October 20-24, 2014 Forecast

Weekly Analysis and Recommendation:  

The GBP/USD remained in a tight trading range near the 1.60 range as traders wait for quarterly GDP figures this week. The pound sterling ended the week at 1.6093. The pound finished the week up slightly against the dollar after dropping to an 11-month low on Tuesday following surprisingly weak inflation data out of the U.K.

The US dollar recovered on Friday after Janet Yellen’s speech and better than expected housing data. US Federal Reserve Chief Janet Yellen says she is greatly concerned over the widening gap between the rich and poor in the United States. Speaking in the US city of Boston on Friday, Yellen said “income and wealth inequality are near their highest levels in the past hundred years” and have widened during the economic recovery. In her speech at a conference on inequality, the Fed chair did not mention monetary policy nor the current turmoil in financial markets.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

 Historical: From 2011 to Present

Highest: 1.6618 USD on Aug 19, 2011

Average: 1.5764 USD over this period

Lowest: 1.4832 USD on Mar 12, 2013

 

Economic Highlights of the coming week:

Upcoming Government Bond Auctions

Date Time Country 

Oct 21 10:30 Spain 3 & 9M T-bill auction

Oct 21 11:00 Norway Bond auction

Oct 21 11:00 UK Auctions 2.75% 2024 Gilt

Oct 22 11:30 Germany Eur 2.0bn Aug 2046 Bund auction

Oct 23 11:03 Sweden I/L bond auction

Oct 23 17:00 US Announces 2/5/7Y Note & 2Y FRN auctions on Oct 28/29/30 & 29

Oct 23 17:30 Italy Announces details of BTPei/CTZ auctions on Oct 28

Oct 23 19:00 US 30Y TIPS auction

Oct 24 17:30 Italy Announces details of BOT auction on Oct 29