Weekly Analysis and Recommendation: The GBP/USD took a nose dive late in the day on Friday to trade at 1.5971 down by 174 points after the US dollar
The GBP/USD took a nose dive late in the day on Friday to trade at 1.5971 down by 174 points after the US dollar climbed and weak UK data all week long. Traders are waiting for the BoE meeting this week. In September, uncertainty around the Scottish election and a broad rally in the USD weighed heavily on the British pound (GBP). Sentiment deteriorated and the large net long position was sold off in September with the CFTC reporting a flat GBP position by month end. Technicals are providing little in terms of guidance. Fundamentally the BoE is likely to be the first of the G4 to enter its hiking cycle, accordingly, once the broad USD rally eases, the GBP should retrace some its recent losses.
The pound saw its biggest weekly drop in 15 months, sinking below $1.60 for the first time since November, as signs the U.K. economic recovery is fading damped bets on higher interest rates. The pound dropped the most in almost a month against the dollar yesterday as the U.S. unemployment rate fell to 5.9 percent, boosting speculation Federal Reserve policy makers are moving closer to raising their benchmark rate.
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
Events You Should Be Monitoring This Week:
CAD Ivey PMI
NZD NZIER Business Confidence
JPY Monetary Policy Statement
AUD Cash Rate
AUD RBA Rate Statement
JPY BOJ Press Conference
GBP Manufacturing Production m/m
CAD Building Permits m/m
USD FOMC Meeting Minutes
AUD Employment Change
AUD Unemployment Rate
GBP Asset Purchase Facility
GBP Official Bank Rate
GBP MPC Rate Statement
USD Unemployment Claims
EUR ECB President Draghi Speaks
CAD Employment Change
CAD Unemployment Rate
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