EUR/GBP Fundamental Analysis – Forecast for the week of June 27, 2016

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Published: Jun 25, 2016, 05:18 UTC

The EUR/GBP closed the week at 0.8137 as both currencies tumbled after the UK voted to leave the European Union. The pair gained 6.35% on Friday along but

EUR/GBP Fundamental Analysis – Forecast for the week of June 27, 2016

The EUR/GBP closed the week at 0.8137 as both currencies tumbled after the UK voted to leave the European Union. The pair gained 6.35% on Friday along but saw a weekly gain of 3.60%. “There’s going to be a lot of headlines out with the G7 making comments, Central Banks will be making comments, you’re going to have a lot of updates throughout the year,” Mr O’Sullivan said.

“There are certain days you never forget and this will be one of them,” said David Bloom, head of global currency strategy at HSBC Holdings. “Everyone is all over the place, it’s been a roller-coaster.”

The pound has fluctuated vigorously since the start of the campaign in February, acting as a barometer for sentiment and reflecting the side of the debate in the lead.

A day like today is unprecedented in the global currency market and has caused extreme volatility in most major currency pairs. This impact is being felt strongly at commercial foreign exchange companies as they are on the front line of the global forex market. Commercial foreign exchange companies offer low-cost international money transfers, currency hedging derivatives (such as FX options and forward agreements) and guidance to SMEs, expats, private investors and high net worth individuals.

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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

Major Economic Events for the week:


	Cur.		Event	Actual	Forecast	Previous
Tuesday, June 28, 2016
		USD	GDP (QoQ) (Q1)		1.0%	0.8%
		USD	CB Consumer Confidence (Jun)		93.3	92.6
Wednesday, June 29, 2016
		USD	Pending Home Sales (MoM) (May)		-1.1%	5.1%
		USD	Crude Oil Inventories			-0.917M
Thursday, June 30, 2016
		GBP	GDP (QoQ) (Q1)		0.4%	0.4%
		GBP	GDP (YoY) (Q1)		2.0%	2.0%
		EUR	CPI (YoY) (Jun)			-0.1%
		CAD	GDP (MoM) (Apr)		0.1%	-0.2%
Friday, July 1, 2016
			Canada – Canada Day
		JPY	Tankan Large Manufacturers Index (Q2)		4	6
		JPY	Tankan Large Non-Manufacturers Index		19	22
		CNY	Manufacturing PMI (Jun)		50.0	50.1
		CNY	Caixin Manufacturing PMI (Jun)		49.2	49.2
		GBP	Manufacturing PMI (Jun)		50.2	50.1
		USD	ISM Manufacturing PMI (Jun)		51.5	51.3