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GBP/USD Weekly Fundamental Analysis, October 6 – October 10, 2014 Forecast

By:
James Hyerczyk
Updated: Aug 24, 2015, 22:00 UTC

The GBP/USD was hit on two fronts last week, leading to another lower close. The first wave of selling came following some negative comments about the

Weekly GBP/USD

The GBP/USD was hit on two fronts last week, leading to another lower close. The first wave of selling came following some negative comments about the economy from a Bank of England policymaker on Thursday. The second, following the release of a strong U.S. Non-Farm Payrolls report at end the week.

Sellers hit the British Pound last week after BOE policymaker Ben Broadbent said the recovery may not be strong enough to warrant higher rates. Additional negative news came in the form of reports showing British services and manufacturing growth losing momentum. House prices also declined.

Sellers showed up again on Friday, following the release of the September jobs report which showed the U.S. economy added 248,000 new jobs versus pre-report estimates of 215,000. The unemployment rate also fell below 6.0%. The news drove up U.S. interest rates which made the dollar a more attractive investment over the British Pound.

Doubts about U.K. monetary policy could put pressure on the GBP/USD again this week. Traders will get more clarity about the state of the economy and the timing of the expected rate hike by the central bank when the Bank of England policymakers meet on Thursday, October 9. The early forecast is for the BOE to leave its benchmark interest rate unchanged along with its current level of quantitative easing.

Weekly GBP/USD
Weekly GBP/USD

High Impact Economic Events That Traders Should Be Aware Of This Coming Week

Currency         Event                                                                      Forecast                           Previous

Monday, October 6

There are on high impact economic events today.

Tuesday, October 7

GBP                 Manufacturing Production m/m                         0.2%                                   0.3%

Wednesday, October 8         

USD                FOMC Meeting Minutes 

Thursday, October 9

GBP                Asset Purchase Facility                                           375B                                 375B

GBP                Official Bank Rate                                                    0.50%                               0.50%

GBP                MPC Rate Statement

USD                Unemployment Claims                                           291K                                287K

Friday, October 10

There are on high impact economic events today. 

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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