EUR/GBP Fundamental Analysis April 22, 2013 Forecast

Analysis and Recommendations:

The EUR/GBP is trading at 0.8530 moving between small loses and gains on global sentiment as both currencies are trading in the green today with no supporting data driving the moves. Sterling was broadly stronger on Friday, supported by renewed weakness in the yen after the G20 accepted Japan’s reasons for aggressive monetary expansion and on persistent expectations for a euro zone rate cut soon. Talk of corporate flows that would boost the British currency also helped sterling buck recent weakness driven by expectations the Bank of England will expand its asset purchase program.

While the euro was slightly up on the day against the dollar, it remained under pressure on speculation the European Central Bank may adjust interest rates if new data warrants a cut.    The euro lost 1.1 percent on Wednesday, its worst daily performance since June, after European Central Bank Governing Council member Jens Weidmann was quoted by the Wall Street Journal as saying the bank could ease policy further if economic data warrants it.  The keys to the euro going forward should be squarely in the hands of euro zone data. A continued stream of lackluster data would strengthen the case for an ECB rate cut and weigh on the euro.

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 up to the data analysis and information in our weekly reports.

Economic Data April 18, 2013 actual v. forecast

 

Upcoming Economic Events that affect the CHF, EUR, GBP, CAD and USD

Government Bond Auction

Date Time Country 

Apr 22 09:10 Norway

Apr 22 15:30 Italy

Apr 23 08:30 Spain

Apr 23 15:30 Italy

Apr 23 17:00 US

Apr 24 09:10 Italy

Apr 24 09:30 Germany

Apr 24 09:30 UK

Apr 24 17:00 US

Apr 25 00:30 Japan

Apr 25 09:10 Sweden

Apr 25 11:00 Norway

Apr 25 14:30 Sweden

Apr 25 17:00 US