EUR/GBP Fundamental Analysis – week of September 12, 2016 – Forecast

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Published: Sep 10, 2016, 07:11 UTC

The EUR/GBP closed the week at 0.8467 with a gain of 0.88% on the week as the euro rallied after the lack of action by the ECB. The central bank did not

EUR/GBP Fundamental Analysis – week of September 12, 2016 – Forecast

The EUR/GBP closed the week at 0.8467 with a gain of 0.88% on the week as the euro rallied after the lack of action by the ECB. The central bank did not offer up any additional stimulus giving the euro a bounce. Friday’s reversal of the US dollar weighed on the pair while the pound also traded on a strong note on additional positive economic data and Prime Minister May’s outlook for the Brexit negotiations. The pair is a strong buy into the new week as traders look forward to the Bank of England’s Super Thursday rate meeting.

Analysts said the shrinking trade gap bolstered hopes that external trade would make a positive contribution to overall growth in the third quarter and added to evidence of the economy’s resilience.

Investors are reconsidering price levels of assets now that there’s less help on the way from various central banks, Blais said. The European Central Bank, for example, said yesterday it would not extend the duration of its bond-buying stimulus program, surprising the markets.

The sectors that have most benefited from easy monetary policy, like telecoms, utilities, materials and energy, have been hit the most, Blais said.

“It’s not a surprise to see those names at the bottom end of the performance or those names selling off the most.”

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This Week’s Economic Events That You Should Be Monitoring:

Date	Country	Name	Volatility	Previous	Consensus
9/13/2016	GBP	Core Consumer Price Index	3	1.3	1.4
9/13/2016	GBP	Consumer Price Index (YoY)	3	0.6	0.7
9/13/2016	EUR	ECB President Draghi’s Speech	3
9/13/2016	EUR	ZEW Survey – Economic	3	4.6	6.7
9/14/2016	NZD	Gross Domestic Product (YoY)	3	2.8
9/15/2016	AUD	Employment Change	3	26.2	15
9/15/2016	AUD	Unemployment Rate	3	5.7	5.7
9/15/2016	CHF	SNB Interest Rate Decision	3	-0.75	-0.75
9/15/2016	CHF	SNB press conference	3
9/15/2016	GBP	BoE Asset Purchase Facility	3	435	435
9/15/2016	GBP	BoE Interest Rate Decision	3	0.25	0.25
9/15/2016	GBP	Monetary Policy Summary	3
9/15/2016	GBP	BOE MPC Vote Cut	3	9	0
9/15/2016	GBP	BOE MPC Vote Unchanged	3	0	9
9/15/2016	GBP	BOE MPC Vote Hike	3	0	0
9/15/2016	GBP	Bank of England Minutes	3
9/15/2016	USD	Retail Sales (MoM)	3	0	0
9/16/2016	USD	Consumer Price Index (YoY)	3	0.8	1
9/16/2016	USD	Consumer Price Index ECORE	3	2.2	2.2
9/16/2016	USD	Michigan Consumer Sentiment	3	89.8	91