EUR/GBP Fundamental Forecast – May 9, 2016

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Published: May 6, 2016, 11:57 UTC

The EUR/GBP added 4 points as both currencies gained today leaving them seesawing to see which one is control. The pair is trading at 0.7878. Today’s sole

EUR/GBP Fundamental Forecast – May 9, 2016

The EUR/GBP added 4 points as both currencies gained today leaving them seesawing to see which one is control. The pair is trading at 0.7878. Today’s sole Eurozone event, Retail PMI, slipped to 47.9 points. It’s a busy day in the US, with three key employment releases, highlighted by Nonfarm Payrolls. The markets are braced for NFP to drop to 203 thousand.

Eurozone retail sales reports remain soft. Retail sales are a key gauge of consumer spending, which is a critical driver of economic growth. On Friday, Eurozone Retail PMI dropped to 47.9 points, its weakest reading since February 2015. The indicator has pushed above the 50-level, which indicates expansion, only once since October. Eurozone Retail Sales declined 0.5%, surprising the markets which had expected a 0.1% gain.

The pound fell to its lowest level against the dollar in over a week as construction became the latest sector to signal Britain’s economy is losing momentum, with the UK heading for a referendum that may push it out of the world’s largest trading bloc.

Sterling also slid versus the euro after Markit Economics said its construction gauge fell to 52 last months, compared with the 54 median prediction of economists. The currency pared losses against the dollar after a private report showed lower-than-forecast US jobs gains in April.

The pound, which briefly erased its 2016 losses against the dollar on Tuesday, has now reclaimed its place as the worst-performing Group-of-10 currency.

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.