EUR/GBP Fundamental Analysis August 12, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP eased by 15 points to trade at 0.7981 as the euro eased and the pound gained on a quiet trading day. Following a few weeks of losses the Euro gained across the board last week, despite no real positive data being released. Indeed Mario Draghi hinted at growth forecasts being lowered yet again, and even stated that the ECB is considering further asset purchasing in the near future if the current position of the EU remains stagnant. The only real positive words uttered from Draghi’s lips involved him brushing aside the fact that inflation in the Eurozone has been below target for months by suggesting that energy prices are skewing an otherwise positive figure. The geopolitical situation also continues to present uncertainty, with Iraq now coming back to the forefront as US President Obama orders airstrikes in the country, coupled with the on-going the tit-for-tat sanctions being imposed on Russia and vice versa.

Sterling started a week set to be dominated by the Bank of England’s latest inflation report with a small gain on Monday, holding just below 80 pence per euro and $1.68 after its fifth consecutive week of losses against the greenback. 

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 August 11, 2014 actual v. forecast

 

Upcoming Economic Events

Tuesday, August 12

 

Government Bond Auction

Date Time Country 

Aug 13

EUR       German 10-y Bond Auction

USD       10-y Bond Auction