EUR/GBP Fundamental Forecast – July 27, 2016

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Updated: Jul 26, 2016, 08:08 UTC

The EUR/GBP soared 47 points as the pound reversed gains to trade in the red as comments from the Bank of England stressed traders as well as projections

EUR/GBP Fundamental Forecast – July 27, 2016

The EUR/GBP soared 47 points as the pound reversed gains to trade in the red as comments from the Bank of England stressed traders as well as projections that the UK will definitely enter a period of recession due to the shift to Brexit. The euro is fire at 110 again the US dollar. There is little on the calendar today to shift this pair. The Chartered Institute of Procurement and Supply (CIPS), which issues monthly Purchasing Manager Index surveys of various sectors of the UK economy, announced last Wednesday that it would be publishing a, ‘Flash UK PMI’ survey which, ‘will follow the same principles as Markit’s Flash PMIs for the Eurozone, Germany and France.’

The release certainly fulfilled that brief, with the Composite version of the survey, published last Friday and covering all sectors of the British economy, printing at 47.7 – its lowest level since April 2009. The accompanying report from Markit / CIPS described the ‘dramatic deterioration’ in British economic activity in the wake of the Brexit vote.

Last week the first concrete signs emerged that the vote might be starting to take a toll on the already slowing economy, with a survey from Markit suggesting business activity is declining at the fastest rate since 2009.

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Wednesday, July 27, 2016

Country	Name	Volatility	Previous
AUD	Consumer Price Index (QoQ)	3	-0.2
AUD	RBA trimmed mean CPI (YoY)	3	1.7
AUD	Consumer Price Index (YoY)	3	1.3
AUD	RBA trimmed mean CPI (QoQ)	3	0.2
EUR	Gfk Consumer Confidence Survey	2	10.1
GBP	Gross Domestic Product (YoY)	2	2
GBP	Gross Domestic Product (QoQ)	2	0.4
USD	Durable Goods Orders	3	-2.2
USD	Durable Goods Orders Core	3	-0.3
USD	Pending Home Sales (YoY)	2	2.4
USD	Pending Home Sales (MoM)	2	-3.7
USD	Fed’s Monetary Policy Statement	3
USD	Fed Interest Rate Decision	3	0.5