Fundamental Analysis

The total market value of all goods and services produced within the political boundaries of the UK during a given period of time, were usually it's calculated on a quarterly basis. The GDP is usually looked at as the official measure to the health of an economy as it reflects the nation's productivity. GDP is divided among personal consumption, investment, net exports, and governmental spending as follows:

GDP = C + G + I + NX

where:

"C" refers to all private consumption, or consumer spending, in a nation's economy; this includes most personal expenditures of households such as food, rent, medical expenses and so on but does not include new housing.

"G" refers to the sum of government spending; from salaries to the public sector to military purchases expenditure; the measure does not include transfer payments such as social security or unemployment benefits.

"I" refers to the sum of all the country's businesses investment in capital; spending by households on new houses for example is also included in Investment. 'Investment' in GDP is specifically identified as non-financial product purchases.

"NX" refers to the nation's total net exports of goods and services minus total imports, since they are already included in C, I, or G thereby should be deducted to not count foreign supply as domestic (NX = Exports - Imports)

Commonly data are complied and released by the UK Office of National Statistics on a quarterly basis coming out 3.5 weeks after a quarter has ended, usually reported in "real" terms, which is economic growth minus the effect of inflation. The reading is released throughout the course of the quarter revised at least two times until the final reading; the sequel starts with the Advanced Estimate, then the Preliminary Reading, and then the Final Reading.

EURUSD

The pair neared support 1.4145 highlighted in our morning report, where the pair could start rebounding upwards from. Momentum indicators are showing strength and were able to weaken bearish momentum through it; whereas stochastic entered oversold areas. These factors make us maintain our morning expectations intact, while noting the importance of stability above key support for the upside channel in the chart above.

GBPUSD

The pair continues stable trading above 84.00, while continuing to show overbought signs on Stochastic. Hence,we hold onto our morning expectations intact and signs to stability above 84.65 that could fail in case of a pending correction.

AUDUSD

USDJPY

EURJPY

AUDJPY