GBP/USD Daily Fundamental Analysis for July 20, 2011 |
On Tuesday, the pound showed advance against the dollar as hopes that EU leaders will be able to put a plan to avoid Greek default boosted demand on higher-yielding currencies.
The British economy lacked fundamentals therefore the pair followed the general sentiment in the market as the dollar showed decline against a basket of major currencies despite the rise in U.S. housing starts to 629,000 in June from 549,000 in May, according to data released on Tuesday.
On Wednesday, at 08:30 GMT, attention will be toward BoE minutes release which is expected to show another split among policy makers which is expected to be the same as the previous months.
The minutes for June's rate decision pushed the sterling to the downside as it showed more consensus among BoE policy makers regard keeping lose monetary policy. In July, the same voting is expected to take place with 7-2 for interest rate and 8-1 for APF.
In the US, eyes will be on MBA mortgage applications for July 15 at 11:00 GMT while will be followed by existing home sales at 14:00 GMT. Existing home sales are predicted to show 2.6% advance from the preceding 3.8% drop.
Originally posted here.
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