EUR/GBP Fundamental Analysis August 13, 2012, Forecast

Posted August 10, 2012 16:14 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Analysis and Recommendations:

The EUR/GBP continued its decline, trading at 0.7848, as investor just seems to have lost confidence in the euro today. Markets were hoping and praying for a lot from Mr. Draghi and they have not seen an performance, although, they want fast results, a central bank does not always move in fast visible means. But investors are strange animals, they need results now and today, otherwise they just move on, and it this case they have. After years of disappointments from the EU leadership, with plans and promises unfulfilled, traders just do not have the patience any longer.

On the other hand recent data from the UK paint a terrible economic picture, with GDP tumbling into recession, the trade balance widening beyond forecast and today PPI is dipping again.

It seems that traders have more faith in the UK then they do in the EU.

FxEmpire provides in-depth analysis for each currency and commodity we review. Fundamental analysis is provided in three components. We provide a detailed monthly analysis and forecast at the beginning of each month. Then we provide more up to the data analysis and information in our weekly reports.

Chinese Economic Data August 9 -10, 2012 actual v. forecast

CNY

Chinese CPI (YoY)

1.8%

1.7%

2.2%

CNY

Chinese PPI (YoY)

-2.9%

-2.5%

-2.1%

CNY

Chinese CPI (MoM)

0.1%

-0.1%

-0.6%

CNY

Chinese Fixed Asset Investment (YoY)

20.4%

20.5%

20.4%

CNY

Chinese Industrial Production (YoY)

9.2%

9.8%

9.5%

CNY

Chinese Retail Sales (YoY)

13.1%

13.7%

Economic Data for August 10, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

Aug. 10

AUD

RBA Monetary Policy Statement

CNY

Chinese Trade Balance

25.10B

35.10B

31.70B

JPY

Industrial Production (MoM)

0.4%

-0.1%

JPY

BoJ Monthly Report

EUR

German CPI (MoM)

0.4%

0.4%

EUR

German CPI (YoY)

1.7%

1.7%

GBP

PPI Input (MoM)

1.3%

1.5%

-2.9%

GBP

PPI Input (YoY)

-2.4%

-1.5%

-3.0%

CAD

Employment Change

-30.4K

9.0K

7.3K

USD

Import Price Index (MoM)

-0.6%

0.1%

-2.4%

CAD

Unemployment Rate

7.3%

7.0%

7.2%

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date	Time	Currency	Event	Previous
Aug 14	1:30	AUD	NAB Business Confidence	-3
	1:30	AUD	New Motor Vehicle Sales m/m	-0.6%
	5:30	EUR	French Prelim GDP q/q	0.0%
	6:00	EUR	German Prelim GDP q/q	0.5%
	6:45	EUR	French Prelim Non-Farm Payrolls q/q	0.1%
	7:15	CHF	PPI m/m	-0.3%
	9:00	EUR	German ZEW Economic Sentiment	-19.6
	9:00	EUR	Flash GDP q/q	0.0%
	9:00	EUR	Industrial Production m/m	0.6%
	9:00	EUR	ZEW Economic Sentiment	-22.3
	12:30	USD	Core Retail Sales m/m	-0.4%
	12:30	USD	PPI m/m	0.1%
	12:30	USD	Retail Sales m/m	-0.5%
	14:00	USD	Business Inventories m/m	0.3%
Aug 15	0:30	AUD	Westpac Consumer Sentiment	3.7%
	1:30	AUD	Wage Price Index q/q	0.9%
	12:30	USD	Core CPI m/m	0.2%
	12:30	USD	Empire State Manufacturing Index	7.4
	13:00	USD	TIC Long-Term Purchases	55.0B
	13:15	USD	Capacity Utilization Rate	78.9%
	13:15	USD	Industrial Production m/m	0.4%
	14:30	USD	Crude Oil Inventories	-3.7M
Aug 16	1:00	AUD	MI Inflation Expectations	3.3%
	9:00	CHF	ZEW Economic Expectations	-42.5
	9:00	EUR	CPI y/y	2.4%
	12:30	USD	Building Permits	0.76M
	12:30	USD	Unemployment Claims	361K
	12:30	USD	Housing Starts	0.76M
	14:00	USD	Philly Fed Manufacturing Index	-12.9
Aug 17	6:00	EUR	German PPI m/m	-0.4%
	8:00	EUR	Current Account	10.9B
	13:55	USD	Prelim UoM Consumer Sentiment	72.3

Government Bond Auctions

Date Time Country

Aug 13 09:10 Italy

Aug 13 09:10 Norway

Aug 13 09:30 Germany

Aug 14 09:10 Greece

Aug 14 09:10 Italy

Aug 14 09:30 Belgium

Aug 14 14:30 UK

Aug 15 09:10 Sweden

Aug 16 09:30 UK

Aug 16 15:00 US

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About: FX Empire Analyst - Barry Norman

Barry produces a private Daily Market Review newsletter that is distributed around the globe to over 25,000 subscribers and recently published a book on Options Trading that is available from amazon.com

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