GBP/USD Fundamental Analysis – September 10, 2015 – Forecast

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Published: Sep 9, 2015, 14:06 GMT+00:00

Analysis and Recommendations: The GBP/USD dipped 44 points on disappointing data today to trade at 1.5352. Poor UK industrial production has put pressure

GBP/USD Fundamental Analysis – September 10, 2015 – Forecast

Analysis and Recommendations:

The GBP/USD dipped 44 points on disappointing data today to trade at 1.5352. Poor UK industrial production has put pressure on GBP/USD. Industrial production growth fell 0.4% month-on-month in July, worse than the 0.10% fall estimated and flat on the previous month. Annual growth of 0.8% was also short of expectations of a 1.4% increase. Manufacturing output numbers fell 0.8% month-on-month versus estimates of a 0.2% rise.

U.K. has released its manufacturing production data which is quite disappointing at -0.8% while forecasts were at positive 0.2% dampening optimism over the country’s economic outlook.

In addition to that U.K’s trade deficit widened to -11.1 billion from previous -8.5 billion, the U.K.’s goods trade deficit expanded more than forecasts in July.

Imports of goods were increased by £0.3 billion to £33.9 billion over the same period. While exports of goods were reduced by £2.3 billion to £22.8 billion, the most contracted numbers of exports since September 2010. This is attributed to decreases in semi-manufactures, specifically finished manufactures of £0.8 billion and chemicals of £1.0 billion.

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:

Cur.	Event	Actual	Forecast	Previous
USD	FOMC Member Kocherlakota Speaks
AUD	Home Loans (MoM) (Jul)	0.3%	0.8%	4.8%
AUD	RBA Assist Gov Lowe Speaks
GBP	Industrial Production (MoM) (Jul)	-0.4%	0.1%	-0.4%
GBP	Manufacturing Production (MoM)	-0.8%	0.2%	0.2%
GBP	Trade Balance (Jul)	-11.08B	-9.50B	-8.51B
GBP	Trade Balance Non-EU (Jul)	-3.46B	-1.90B	-1.51B
AUD	RBA Assist Gov Debelle Speaks

Upcoming Economic Events that you should be monitoring:

Thursday, September 10, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	RBNZ Rate Statement
NZD	RBNZ Gov Wheeler Speaks
GBP	RICS House Price Balance (Aug)		46%	44%
AUD	Employment Change (Aug)		5.0K	38.5K
AUD	Unemployment Rate (Aug)		6.2%	6.3%
CNY	CPI (MoM) (Aug)		0.4%	0.3%
CNY	PPI (YoY) (Aug)		-5.5%	-5.4%
GBP	Interest Rate Decision (Sep)		0.50%	0.50%
GBP	BoE MPC Meeting Minutes
USD	Initial Jobless Claims		275K	282K
CAD	New Housing Price Index (MoM) (Jul)		0.2%	0.3%
USD	Crude Oil Inventories			4.667M