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Analysis and Recommendations:
The GBP/USD remains the best market performer climbing to 1.5812 up by 7 pips. The data calendar contains a string of US figures later this afternoon. The most important of the latter is the advance retail sales figures. Markets will also receive consumer confidence, capacity utilization and PPI (producer price index) numbers. It is unlikely that any of these will surprise enough to affect the Fed’s decision next week, but the markets are very jumpy and could react strongly to the numbers.
There was no UK data today but overall sentiment is supportive of the pound ever since a rash of data ranging from employment changes to PMI all reported a strong turn around in the UK economy supported by an upgrade of GDP numbers. Sterling rose to an eight-month high against a basket of currencies on Friday on the view that a strengthening British economy will mean interest rates rising earlier than the central bank has flagged. The pound’s trade-weighted index rose to 82.7, its highest since mid-January, as the UK currency stayed near multi-month highs against the dollar and the euro.
Adding to the picture of a stronger economy, second-tier data on Friday showed UK construction output rose by 2.2 per cent in July from June, with signs of more expansion to come as new orders jumped in the second quarter. The pound held steady against the dollar, which was broadly firmer against most other currencies on a report that US President Barack Obama could name former Treasury Secretary Lawrence Summers as the next chairman of the Federal Reserve. Some in the market believe this could lead the Fed to adopt a more hawkish stance. The US central bank is expected to announce next week it will start scaling back monetary stimulus.
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.
Economic Data September 13, 2013 actual v. forecast
Upcoming Economic Events that affect the CHF, EUR, GBP, CAD and USD
Government Bond Auction
Date Time Country
Sep 16 09:00 Slovakia
Sep 16 09:10 Norway
Sep 17 08:30 Spain
Sep 17 09:30 Belgium
Sep 18 09:10 Sweden
Sep 18 09:30 Germany
Sep 18 09:30 Portugal
Sep 19 08:30 Spain
Sep 19 08:50 France
Sep 19 09:30 UK
Sep 19 09:50 France
Sep 19 15:00 US
Sep 19 17:00 US
Sep 20 15:30 Italy
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