GBP/USD Daily Fundamental Analysis for July 28, 2011

At 23:01 GMT, the UK will release Gfk consumer confidence, while the main highlight will be on US data; the US economy will release initial jobless claims for the week ending July 23 and continuing claims for the week ending July 16 will be available at 12:30 GMT. At 14:00 GMT, pending home sales report is expected to show 2.0% drop in June relative to 8.2% rise recorded in May.

Meanwhile, the main concentration is on the U.S. debt limit problem which is intensifying as U.S. officials, so far, had failed to bridge the difference among them which is raising concerns that they will not reach an agreement before an August 2 deadline.

On Tuesday trading, the pound retreated against the dollar as the jittery situation in the market triggered demand on low-yielding currencies, amid the lack of important fundamentals from the U.K.

On the other hand, fundamentals from the U.S. showed that durable goods orders fell 2.1% in June compared with the revised 1.9% advance, causing the dollar to surrender some of its gains.

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