Significant factors to affect the trading of the pair GBP/USD for the week ending August 31st, 2012 are as follows:

On Monday, in United States, Dallas’s Federal Reserve reported its manufacturing activity. United Kingdom came up with its hometrack housing survey.

On Tuesday, in United States, S&P/Case-Shiller home price index and S&P/Case-Shiller composite 20 index was released. Data on consumer confidence and manufacturing index was also reported in the US.

On Wednesday, in the United States, several indicators are expected which will include data on MBA mortgage applications, core personal consumption expenditure, gross domestic product figure, data on personal consumption and data on pending home sales. US Federal Reserve will publish its Beige book economic survey while US Energy Department will report inventories data for crude oil, gasoline and distillates.

On Thursday, United States will report its data on continuing claims, initial jobless claims, personal consumption expenditure, personal spending and personal income. Kansas City Federal Reserve reported its data on manufacturing activity while Energy Information Administration will report its data on natural gas supplies. In United Kingdom, data on net consumer credit, mortgage approvals, net lending of Dwellings and M4 money supply will be released.

On Friday, In United States, data on factory orders and Chicago’s purchasing managers’ index is to be reported while University of Michigan will publish its report on consumer confidence. US Federal Reserve’s Chairman will also address at Jackson Hole Economic Policy Symposium. In United Kingdom data on house prices and consumer confidence survey will be published while Bank of England’s officials Haldane and Posen will deliver a speech at Jackson Hole Economic Policy Symposium.

Major factors to affect the trading of the pair EUR/USD  for the week ending August 31st, 2012 are as under:

On Monday, August 27^th, 2012, data on Germany’s import price index, IFO expectations, IFO current assessment and IFO Business Climate was published. France reported net change in jobseekers data. In United States, Dallas’s Federal Reserve reported its manufacturing activity.

On Tuesday, August 28^th, 2012, Gfk consumer confidence survey was published in Germany while data on M3 money supply was reported for the euro zone. In United States, S&P/Case-Shiller home price index and S&P/Case-Shiller composite 20 index was released. Data on consumer confidence and manufacturing index was also reported in the US.

On Wednesday, August 29^th, data on consumer price index will published in Germany while in the United States, several indicators are expected which will include data on MBA mortgage applications, core personal consumption expenditure, gross domestic product figure, data on personal consumption and data on pending home sales. US Federal Reserve will publish its Beige book economic survey while US Energy Department will report inventories data for crude oil, gasoline and distillates.

On Thursday, August 30^th, 2012, Germany will report its unemployment rate and data on unemployment change. In the euro zone, data on services confidence, industrial confidence, economic confidence, consumer confidence and business climate indicator is to be published. United States will report its data on continuing claims, initial jobless claims, personal consumption expenditure, personal spending and personal income. Kansas City Federal Reserve reported its data on manufacturing activity while Energy Information Administration will report its data on natural gas supplies.

On Friday, August 31^st, 2012, data on retail sales will be reported in Germany while Italy will come up with figure of unemployment rate. In the euro zone, data on consumer price index and unemployment rate is expected. Moreover, International Monetary Fund’s official Lagarde will address at Jackson Hole Economic Policy Symposium.

In United States, data on factory orders and Chicago’s purchasing managers’ index is to be reported while University of Michigan will publish its report on consumer confidence. US Federal Reserve’s Chairman will also address at Jackson Hole Economic Policy Symposium.

The greenback declined on Monday against its major rival currencies as the US Federal Reserve’s Chairman Ben Bernanke indicated further easing in US monetary policy. In his latest speech to National Association for Business Economics on Monday, Bernanke expressed that faster pace of economic recovery is required which could bring reduction in unemployment rate. Bernanke was also doubtful on sustainability of the current improvement in employment data.

Traders and most analysts interpreted the indications of further monetary stimulus measures by Federal Reserve which always have a negative impact on the US dollar. Quantitative easing always devalues the currency as its is considered more of an alternative to printing money.

Kathy Lien from GFT commented, “The Fed chairman crushed the hopes of dollar bulls when he said accommodative monetary policy is needed to reduce unemployment, Bernanke used the word accommodative so many times in his speech today that it left little to doubt in our minds that they will not only keep the current stimulus in place for the next two years, but at the first sign of weakness, which can be caused by anything including higher oil prices, they will turn on the printing presses.”

The dollar index DXY which measures the greenback’s performance versus its six major rival currencies declined to 78.896 on Monday as compared to 79.344 on Friday’s North American trading session.

The euro gained to 1.3363 against the US dollar on Monday as compared to 1.3265 on Friday’s late trading hours. Among other currencies, the British Pound gained to 1.5970 versus the greenback on Monday as compared to 1.5874 on late Friday. Against the Japanese yen, the US dollar gained to 82.80 as compared to 82.46 on Friday.

On Monday, in United States, data on pending home sales and Dallas Fed’s manufacturing activity was published. Chicago’s Federal Reserve Bank also reported its Nat Activity index.

On Tuesday, in United Kingdom data on nationwide house prices and CBI sales was reported while Switzerland published its consumption indicator.

In United States, data on consumer confidence, Case Shiller Home price index and manufacturing index by Richmond’s Fed was released. Moreover, US Federal Reserve’s Chairman Ben Bernanke also gave a lecture at George Washington University.

On Wednesday, in United Kingdom, data on total business investment, current account and gross domestic product will be reported. In United States, data on durable goods orders is expected while US Department of Energy will report its data on crude oil, gasoline and distillates stockpiles.

On Thursday, in United States will report its data on personal consumption, gross domestic product, initial jobless claims, continuing claims and manufacturing activity in Kansas city. Energy Information Administration will release its data on natural gas supplies while US Federal Reserve’s Chairman, Ben Bernanke will give lecture at George Washington University. In Canada, data on industrial product price is expected. in United Kingdom, data on index of services, net consumer credit, M4 money supply, mortgage approvals and net lending on dwelling will be reported.

On Friday, United States will report its data on consumer expenditure, personal spending, gross domestic product and personal income. Moreover, University of Michigan will also publish its data on consumer confidence.

On Monday, March 26^th, Italian consumer confidence was released in the euro zone while IFO institute published the data on Germany’s business climate, current assessment and expectations. France also reported its data on total and net change in jobseekers.

In United States, data on pending home sales and Dallas Fed’s manufacturing activity was published. Chicago’s Federal Reserve Bank also reported its Nat Activity index.

Today on Tuesday, in euro zone, data on Germany’s import price index and consumer confidence survey by Gfk institute was released. In United States, data on consumer confidence, Case Shiller Home price index and manufacturing index by Richmond’s Fed was released. Moreover, US Federal Reserve’s Chairman Ben Bernanke also gave a lecture at George Washington University.

On Wednesday, March 28^th, 2012, France will report data on its gross domestic product growth in euro zone while Germany will release its data on consumer price index. Italy will also report its data on business confidence while the euro zone will publish its separate report on M3 money supply. In United States, data on durable goods orders is expected while US Department of Energy will report its data on crude oil, gasoline and distillates stockpiles.

On Thursday, March 29^th, data on Germany’s unemployment change will be published while the euro zone will report its data on services confidence, business climate indicator, consumer confidence, economic confidence and industrial confidence.

In United States will report its data on personal consumption, gross domestic product, initial jobless claims, continuing claims and manufacturing activity in Kansas city. Energy Information Administration will release its data on natural gas supplies while US Federal Reserve’s Chairman, Ben Bernanke will give lecture at George Washington University.

On Friday March 30^th, 2012, in euro zone, data on German retail sales is expected while France will report its data on producer prices. In Italy, data on producer price index, consumer price index and hourly wages will be released while the single currency region will publish its separate report on consumer price index estimate.

United States will report its data on consumer expenditure, personal spending, gross domestic product and personal income. Moreover, University of Michigan will also publish its data on consumer confidence.

The greenback gained on Wednesday versus its major rival currencies as US Federal Reserve’s Chairman Ben Bernanke gave his statement on the Europe’s sovereign debt crisis. Bernanke along with Giethner testified in frond House Government Reform Committee and said more work needs to be done on Europe’s situation.

The dollar index DXY which measures the greenback’s performance against its six major rival currencies advanced to 79.654 on Wednesday as compared to 79.616 on Tuesday’s North American trading session.

The euro fell to 1.3205 against the US dollar on Wednesday as compared to 1.3224 on Tuesday’s late trading hours. The euro also fell 0.2 percent versus the British Pound to 83.26 pence. The euro fell 0.2 percent against the Japanese yen to 110.27.

The British Pound remained lower in reaction to increase in public borrowing by UK government in the month of February. UK’s Office for National Statistics released its data on Wednesday according to which public borrowing gained to 15.2 billion pounds equivalent to $24.2 billion in the month of February as compared to 8.9 billion pounds last year. Public borrowing for UK has reached its record highest in history.

The British Pound fell to 1.5864 against the US dollar on Wednesday as compared to 1.581 on late Tuesday. The British Pound was also under pressure on the Bank of England’s latest minutes of monetary policy meeting in which tow members supported further expansion in the central bank’s quantitative easing program. The British Pound fell 0.2 percent to 132.43 versus the Japanese yen.

Against the Japanese yen, the US dollar fell to 83.47 on Wednesday as compared to 83.77 on late Tuesday.