EUR/GBP Fundamental Forecast – August 22. 2016

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Published: Aug 19, 2016, 11:36 UTC

The EUR/GBP gained 8 points as both currencies tumbled as sentiment shifted. The pound corrected from yesterday’s rally after retail sales printed well

EUR/GBP Fundamental Forecast – August 22. 2016

The EUR/GBP gained 8 points as both currencies tumbled as sentiment shifted. The pound corrected from yesterday’s rally after retail sales printed well above expectations. There was some second tier data for both tue Eurozone and the UK which printed better than expected. Eurozone PPI printed higher than expected while public sector borrowing in the UK was printed better than expected. The plunge in the pound has been one of the key stories following the UK’s vote for Brexit, with experts variously claiming the drop could either help or hinder the economy.

According to online currency exchange firm FairFX. It claims ICE at Luton was charging around ten per cent less than the market rate in mid-April, but that has now risen to 14 per cent. So while the pound was always going to be worth a lot less – it’s down 13 per cent against the euro since the referendum, after all – it only went below zero because firms boosted their margins.

Most markets commentators say that trading in the pound is the most direct sign of investor confidence in the UK economy – and so it has come to exemplify post-referendum anxiety.

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Monday, August 22, 2016

Country	Name	Volatility	Previous
EUR	Markit Services PMI	2	54.4
EUR	Markit Manufacturing PMI	2	53.8
EUR	Markit PMI Composite	2	55.3
EUR	Markit Services PMI	2	52.9
EUR	Markit Manufacturing PMI	2	52
EUR	Markit PMI Composite	2	53.2
USD	Markit Manufacturing PMI	2	52.9
USD	Markit Services PMI	2	51.4
USD	Markit PMI Composite	2	51.8
GBP	Gfk Consumer Confidence	2	-12
GBP	Inflation Report Hearings	3
USD	Durable Goods Orders CORE	2	-0.5
USD	Durable Goods Orders	2	-4
USD	New Home Sales (MoM)	2	0.592
USD	New Home Sales Change (MoM)	2	3.5