EUR/GBP Fundamental Forecast – April 26, 2016

The EUR/GBP saw a gain of 18 points as the euro outperformed today paying no attention to weak German business expectations. The pound also climbed today but was outpaced by the euro.  The pair moved to 0.7802. The pound traded near a six-week high against the euro on Monday, buoyed by growing expectations that Britons would vote to stay in the European Union after US President Barack Obama waded into the debate.

Last week, the pound had posted its best week against the single currency since early March as odds swung in favor of the campaign to stay in the European Union.

From 37 per cent early last week, the chances of Britain voting to leave the EU in the June 23 referendum fell to 30 per cent, according to the Betfair betting exchange.

Bookmaker Ladbrokes also reported a shift in betting towards the “Remain” campaign and a number of opinion polls indicated that those in favor of staying in the Union were gaining an upper hand.

Traders said Obama’s appeal for Britain to remain in the 28-country bloc was helping the sentiment as it underlined the weight of argument in recent weeks from global and financial leaders in favor of staying.

“The might of Obama’s public relations has helped sterling reach highs against the euro, as odds swing against the Brexit campaign,” said Tobias Davis, head of corporate treasury sales at Western Union. (Reuters)

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Tuesday, April 26, 2016

Government Bond Auctions

Date Time       Country           Auction

Apr 26 11:10 Italy Holds BTP€i auction

Apr 26 19:00 US Holds 2-year note auction

Apr 27 11:03 Sweden Holds bond auction

Apr 27 11:10 Italy Holds CTZ auction

Apr 27 11:30 Germany Eur 1bn 2.5% Aug 2046 Bund

Apr 27 19:00 US 2-year FRN, 5-year note auctions

Apr 28 11:10 Italy Holds 5yr/10yr bond auctions

Apr 28 19:00 US Holds 7-year note auction