EUR/GBP Fundamental Forecast – May 4, 2016

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Published: May 3, 2016, 12:45 UTC

The EUR/GBP added 22 points to trade at 0.7883 as both currencies continued to rally. In economic news, Eurozone growth is likely to be less than the

EUR/GBP Fundamental Forecast – May 4, 2016

The EUR/GBP added 22 points to trade at 0.7883 as both currencies continued to rally. In economic news, Eurozone growth is likely to be less than the expansion expected earlier during this year and next, and inflation is set to be less than what was seen earlier, latest projections from the European Commission showed Tuesday.

The executive arm of the EU cut the euro area growth forecast for this year to 1.6% from 1.7% in its Spring 2016 Economic Forecast report. The projection for next year was lowered to 1.8% from 1.9%.

The euro showed mixed performance in Asian deals. While the euro held steady against the franc and the pound, it rose against the greenback.

Data from Markit showed that the UK factory activity contracted for the first time in three years in April. The Chartered Institute of Procurement & Supply Purchasing Managers’ Index fell unexpectedly to 49.2 in April from revised 50.7 in March. It was forecast to rise to 51.2 from March’s originally estimated value of 51.

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.

Upcoming Economic Events that you should be monitoring:

Wednesday, May 4, 2016

Cur.	Event	Actual	Forecast	Previous
	Japan – Constitution Day
AUD	Building Approvals (MoM) (Mar)		-3.0%	3.1%
CNY	Caixin Manufacturing PMI (Apr)		49.9	49.7
AUD	Interest Rate Decision (May)		2.00%	2.00%
GBP	Manufacturing PMI (Apr)		51.2	51.0