EUR/GBP Monthly Fundamental Forecast – April 2016

The EUR/GBP closed March at 0.7910 as both currencies gained at the end of the month but the euro outpaced the gain of the pound. The pair saw a gain of 1.53%. The euro uptrend has continued today, thanks to a particularly sharp jump in German Retail Sales. On the year in February consumer demand grew from -1.2% to 5.4%, suggesting that sentiment and economic conditions in the country have improved. As the latest Eurozone Consumer Price Index also showed a modest improvement in inflationary pressure, rising from -0.2% to -0.1%, the common currency has remained on a stronger footing against rivals.

Confidence in Pound Sterling is still generally muted as concerns mount over the future of the UK’s steel industry. This was nevertheless contrasted by an unexpectedly steady GfK Consumer Confidence Survey and the upwards revision of the finalized fourth quarter UK GDP. Clocking in at 2.1% rather than the 1.9% previously estimated, this seemed to suggest that the domestic economy was in a more robust condition at the end of 2015 than initially thought.

FxEmpire provides in-depth analysis for each currency and commodity 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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.

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