GBP/USD Fundamental Analysis, April 15, 2015 – Forecast

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Updated: Jan 1, 2011, 00:00 GMT+00:00

Analysis and Recommendations: The GBP/USD gave up 61 points to trade at 1.4615 at the very bottom of its trading range even though inflation met

GBP/USD Fundamental Analysis, April 15, 2015 - Forecast

Analysis and Recommendations:

The GBP/USD gave up 61 points to trade at 1.4615 at the very bottom of its trading range even though inflation met expectations those forecasts are extremely low. UK elections continue to weigh on the pound with no clear cut leader. PPI beat expectation’s but did not support the currency. British consumer price inflation held steady at a record-low zero percent in March, official figures showed on Tuesday, boosting households’ disposable income before May 7’s election.

The Office for National Statistics said consumer prices rose 0.2 percent between February and March but compared with a year earlier, prices were unchanged, in line with economists’ forecasts. The ONS added that if the price change was calculated to two decimal places, however, prices were 0.01 percent lower than a year before, which would be first fall on record in consumer price inflation on that measure.

Inflation has not been this weak since at least 1989, when comparable data began. The ONS said that a rough estimate based on other figures suggested inflation was the weakest since isolated price falls in 1959 and 1960.

This leaves inflation well below the BoE’s 2 percent target and the headline measure calculated to one decimal point is expected to dip below zero. But for now few economists think Britain is at risk of the Japanese-style entrenched price falls that have threatened the euro zone.

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.

Today’s economic releases actual vs. forecast:

Cur.	Event	Actual	Forecast	Previous
NZD	NZIER Business Confidence	23%		24%
GBP	BRC Retail Sales Monitor	3.2%	0.5%	0.2%
AUD	NAB Business Confidence	3		0
CNY	New Loans	1,180.0B	1,050.0B	1,020.0B
GBP	CPI (MoM) (Mar)	0.2%	0.2%	0.3%
GBP	CPI (YoY) (Mar)	0.0%	0.0%	0.0%
GBP	PPI Input (MoM) (Mar)	0.3%	-0.5%	0.1%
EUR	Industrial Production (Feb)		0.4%	-0.1%

Upcoming Economic Events that you should be monitoring:

Wednesday, April 15, 2015

Cur.	Event	Actual	Forecast	Previous
CNY	GDP (QoQ) (Q1)		1.4%	1.5%
CNY	GDP (YoY) (Q1)		7.0%	7.3%
CNY	Industrial Production		6.9%	6.8%
EUR	Interest Rate Decision		0.05%	0.05%
EUR	ECB Press Conference
CAD	Interest Rate Decision		0.75%	0.75%
CAD	BoC Gov. Poloz