EUR/GBP Fundamental Analysis – August 11, 2015 – Forecast

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Published: Aug 10, 2015, 09:59 UTC

Analysis and Recommendations: The EUR/GBP gained a few points as traders have little data and headlines to keep them interested. Both the pound and the

EUR/GBP Fundamental Analysis – August 11, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP gained a few points as traders have little data and headlines to keep them interested. Both the pound and the euro are trading in the green today but with little action and low volumes. The pair is trading at 0.7085. The euro surged against sterling after the Bank of England unexpectedly signaled that a possible rise in interest rates will be later rather than sooner.

“The depreciation of the euro against sterling and the dollar is providing support to firms exporting to the UK and US, while the recovery in the euro area — Ireland’s other main trading partner — is gaining ground,” she said. There remains a wide range of forecasts on exactly when the Bank of England will raise rates.

Its decision has important consequences for the euro exchange rate. The bank pointed to a possible increase in interest rates early next year, after only one of its top policymakers backed an immediate move. It also forecast a slow pick-up in inflation thanks to a strong pound.

As a result sterling fell sharply and investors briefly pushed back their bets on a first rate increase until June next year, before Bank of England governor Mark Carney said the time was getting closer for the bank to start undoing its stimulus for Britain’s economy. He also warned markets not to be too relaxed.

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.

This weekend and today’s economic releases:

Cur.	Event	Actual	Forecast	Previous
CNY	Exports (YoY) (Jul)	-8.3%	-1.0%	2.8%
CNY	Imports (YoY) (Jul)	-8.1%	-8.0%	-6.1%
CNY	Trade Balance (Jul)	43.03B	53.25B	46.54B
CNY	CPI (MoM) (Jul)	0.3%	0.3%	0.0%
CNY	CPI (YoY) (Jul)	1.6%	1.5%	1.4%
CNY	PPI (YoY) (Jul)	-5.4%	-5.0%	-4.8%
JPY	Adjusted Current Account	1.30T	1.41T	1.64T
JPY	Current Account n.s.a. (Jun)	0.559T	0.774T	1.881T
JPY	BoJ Monthly Report

Upcoming Economic Events that you should be monitoring:

Tuesday, August 11, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	NAB Business Confidence (Jul)			10
EUR	German ZEW Current Conditions		64.4	63.9
EUR	German ZEW Economic Sentiment		32.0	29.7
CAD	Housing Starts (Jul)		195.0K	202.8K
USD	Nonfarm Productivity (QoQ) (Q2)		1.6%	-3.1%
USD	Unit Labor Costs (QoQ) (Q2)		0.2%	6.7%
USD	API Weekly Crude Oil Stock			-2.400M