EUR/GBP Fundamental Analysis October 12, 2012 Forecast

Posted October 12, 2012 8:32 (GMT) | By FX Empire Analyst - Barry Norman | Print | Font Size
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Analysis and Recommendations:

The EUR/GBP added 0.0013 to trade at 0.8057. Sterling hovered near a one-month low versus the dollar on Thursday as concerns about global growth and Spain weighed on perceived riskier currencies, though it edged up against the euro. The pound was vulnerable after Standard & Poor’s cut Spain’s rating to BBB-minus, just above junk status, while concerns remained over when Madrid will apply for a bailout and about company earnings being hit by a global slowdown.

There is no economic data out of the UK today and sterling will look vulnerable against the dollar if there is more weakness in the euro. There has been little in the way of news and little eco data out of Europe today. Concerns about a weak UK economy and the prospect of the Bank of England opting to extend its quantitative easing program in November were expected to keep sterling under pressure against the dollar and cap any gains versus the euro.

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.

Economic Data October 11, 2012 actual v. forecast

Date	Currency	Event	Actual	Forecast	Previous
Oct. 11	JPY	Monetary Policy Meeting Minutes
	AUD	Employment Change	14.5K	3.8K	-9.1K
	AUD	Unemployment Rate	5.4%	5.3%	5.1%
	KRW	South Korean Interest Rate Decision	2.75%	2.75%	3.00%
	EUR	German CPI (MoM)	0.0%	0.0%	0.4%
	EUR	German CPI (YoY)	2.0%	2.0%	2.1%
	INR	Indian Trade Balance	-18.1B		-15.6B
	EUR	French CPI (MoM)	-0.3%	0.1%	0.7%
	HUF	Hungarian CPI (YoY)	6.6%	6.4%	6.0%
	SEK	Swedish CPI (YoY)	0.4%	0.7%	0.7%
	EUR	ECB Monthly Report
	USD	Import Price Index (MoM)	1.1%	0.7%	1.1%
	CAD	Trade Balance	-1.3B	-2.0B	-2.5B
	USD	Trade Balance	-44.2B	-44.0B	-42.5B
	USD	Initial Jobless Claims	339K	370K	369K
	USD	Continuing Jobless Claims	3273K	3275K	3288K

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

Date	Time	Currency	Event	Forecast	Previous
Oct. 12	10:00	EUR	Industrial Production (MoM)	-0.4%	0.6%
	13:30	USD	Core PPI (MoM)	0.2%	0.2%
	13:30	USD	PPI (MoM)	0.8%	1.7%
	14:55	USD	Michigan Consumer Sentiment	77.9	78.3

Government Bond Auction

Date Time Country

Oct 12 09:30 Germany

Oct 12 10:00 Belgium

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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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