EUR/GBP Fundamental Forecast – May 23, 2016

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Published: May 20, 2016, 11:53 UTC

The EUR/GBP is up 32 points at 0.7700 as the pound gave back some of its gains as traders booked profits after the pound rallied over the past few days.

EUR/GBP Fundamental Forecast – May 23, 2016

The EUR/GBP is up 32 points at 0.7700 as the pound gave back some of its gains as traders booked profits after the pound rallied over the past few days. Yesterday’s economic data from Destatis showed that the German producer prices declined 3.1% in April from last year, the same pace of decrease as seen in March but slightly faster than the 3% fall forecast by economists. Producer prices have been falling since August 2013. The 3.1% decrease was the biggest since January 2010 when prices slid 3.5%.

Data from the European Central Bank showed that the euro zone’s current account surplus increased to a 4-month high in March. The current account surplus rose to EUR 27.3 billion in March from EUR 19.2 billion in February. This was the highest level since November. On an unadjusted basis, the current account surplus surged to EUR 32.3 billion from EUR 11.2 billion in February.

Sterling retreated from a 3-1/2-month high against a trade-weighted basket of currencies on Friday but stayed track for its best weekly performance in nearly 10 months.

A robust retail sales report for April along with growing expectations that Britons will vote to stay in the European Union in a referendum on June 23 have boosted the currency this week.

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.

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Monday, May 23, 2016

Cur.	Event	Actual	Forecast	Previous
	Canada – Victoria Day
JPY	Exports (YoY) (Apr)			-6.8%
JPY	Trade Balance (Apr)			755B
EUR	Manufacturing PMI (May)		51.9	51.7
EUR	Markit Composite PMI (May)		53.2	53.0
EUR	Services PMI (May)		53.2	53.1