EUR/GBP Fundamental Analysis – November 26, 2015 – Forecast

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Published: Nov 25, 2015, 12:03 UTC

Analysis and Recommendations: The EUR/GBP dipped 28 points to trade at 0.7028 as the euro tanked today as traders prepare for a massive stimulus program

EUR/GBP Fundamental Analysis – November 26, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP dipped 28 points to trade at 0.7028 as the euro tanked today as traders prepare for a massive stimulus program from the ECB and fallout from the economic effects of terror in Paris and Belgium continue to stress the euro. George Osborne is to set out government spending plans up to 2020 later, which will include billions of pounds in cuts but also new money for house building.

The Autumn Statement and Spending Review will detail £20bn of cuts to Whitehall budgets and £12bn to welfare. But the chancellor will pledge almost £7bn to make house building a priority, with more than 400,000 “affordable homes” to be built in England.

Today, there are few eco data in Europe but the calendar in the US is well packed. Several eco releases are published earlier ahead of Thanksgiving/Black Friday.

The soft ECB stance pushed EUR/GBP lower in the longstanding sideways range. The pair cleared the 0.7196 support after the October FOMC meeting. A retest occurred after a soft BoE inflation report, but the test was rejected. We maintain a sell‐on‐upticks approach for EUR/GBP as euro weakness prevails. Next key support is this year’s low at 0.6936

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.

Today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
USD	API Weekly Crude Oil Stock	2.600M	-0.200M	-0.482M
JPY	Monetary Policy Meeting Minutes
AUD	Construction Work Done (QoQ) (Q3)	-3.6%	-2.1%	2.1%
GBP	BBA Mortgage Approvals	45.4	45.5K	44.5K
AUD	RBA Assist Gov. Debelle Speaks

Upcoming Economic Events that you should be monitoring:

Wednesday, November 26, 2015

Cur.	Event	Actual	Forecast	Previous
	United States – Thanksgiving Day
NZD	Trade Balance (MoM) (Oct)		-937M	-1,222M
NZD	Trade Balance (YoY) (Oct)		-3,370M	-3,200M
AUD	Private New Capital Expenditure		-3.0%	-4.0%
EUR	GfK German Consumer Climate (Dec)		9.2	9.4