1Finance

GBP/USD Forecast Dec. 28 – Jan. 1

GBP/USD showed some downward movement but ended the week unchanged, closing at 1.4925. The final week of 2015 has just two events on the schedule. Here is an outlook on the major events moving the pound and an updated technical analysis for GBP/USD.

In the US, Final GDP for the third quarter posted a gain of 2%, very close to the estimate. Housing numbers disappointed, and durable goods were weak, but within expectations.

1. Nationwide HPI: Wednesday, 7:00. This housing inflation indicator provides a snapshot of the health of the activity of the UK housing sector. The index slipped to 0.1% to November, well off the estimate of 0.5%. The markets are expecting a turnaround in December, with an estimate of 0.4%.
2. Housing Equity Withdrawal: Thursday, 9:30. New home-secured loans decreased in the second quarter, dropping by GBP 10.9 billion, better than the estimate of GBP 12.5 billion. The markets are expecting a decrease of GBP 10.5 billion in Q3.

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