EUR/GBP Fundamental Forecast – August 26, 2016

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Published: Aug 25, 2016, 10:42 UTC

The EUR/GBP added 24 points as the euro rebounded today. There has been little data except for a range of Ifo information which all missed expectations.

EUR/GBP Fundamental Forecast – August 26, 2016

The EUR/GBP added 24 points as the euro rebounded today. There has been little data except for a range of Ifo information which all missed expectations. The pound has been trading on the flat side. The pair is trading at 0.8537. investor profit-taking kept the Pound supported, resuming Sterling’s recovery rally that began on UK data last week. The Euro was able to mute Sterling’s advances thanks to a largely optimistic set of August PMI figures.

EUR/GBP has lost over half a cent since the week’s opening levels of 0.8660. While the sturdy Euro has done a decent job of holding the Pound back, it didn’t stop the pair from hitting its lowest level in almost two weeks, 0.8587.

Despite German exports beating economic forecasts in the second quarter the euro to pound exchange rate weakened further on Wednesday morning.

In large part this was due to the disappointing nature of domestic investment, which is expected to continue dragging on the economy for the foreseeable future unless significant reforms are made by the government.

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August 26, 2016

Country	Name	Volatility	Previous
JPY	Tokyo CPI ex Food, Energy (YoY)	2	0.3
JPY	Tokyo CPI ex Fresh Food (YoY)	2	-0.4
JPY	Tokyo Consumer Price Index (YoY)	2	-0.4
JPY	National CPI Ex-Fresh Food (YoY)	2	-0.5
JPY	National CPI Ex Food, Energy (YoY)	2	0.4
JPY	National Consumer Price Index	2	-0.4
EUR	Gfk Consumer Confidence Survey	2	10
GBP	GDP (YoY)	2	2.2
GBP	GDP (QoQ)	2	0.6
USD	GDP Annualized	2	1.2
USD	GDP Price Index	2	2.2
USD	Personal Consumption (QoQ)	2	1.9
USD	Core Personal Consumption (QoQ)	2	1.7
USD	Markit PMI Composite	2
USD	Baker Hughes US Oil Rig Count	2