EUR/GBP Fundamental Analysis – August 13, 2015 – Forecast

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Published: Aug 12, 2015, 12:49 UTC

Analysis and Recommendations: The EUR/GBP added 56 points as the euro gained after Greece accepted the new bailout terms and the situation in Greece now

EUR/GBP Fundamental Analysis – August 13, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP added 56 points as the euro gained after Greece accepted the new bailout terms and the situation in Greece now seems behind the markets. The pair is trading at 0.7150. The pound eased after a solid jobs print but troubled markets as average earnings tumbled. The euro hit an 11-day high against the dollar, reversing earlier losses, as investors unwound euro-funded positions on the yuan after China’s central surprised markets by devaluing the currency. Outgoing BoE policymaker, David Miles said there was a reasonable case to vote for higher interest rates at his final policy meeting last week but did not find the arguments conclusive. He said the BoE might have to raise rates “slightly” faster if it delayed the rate-tightening cycle for too long.

There had been speculation last month that the BoE could raise rates as soon as November – potentially sooner than the Fed – after Governor Mark Carney said the time for a hike was getting closer.

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.

Today’s economic releases:

Cur.	Event	Actual		Forecast	Previous
USD	API Weekly Crude Oil Stock	-0.847M	-1.800M		-2.400M
JPY	Monetary Policy Meeting Minutes
AUD	Westpac Consumer Sentiment (Aug)	7.8%			-3.2%
AUD	Wage Price Index (QoQ) (Q2)	0.6%	0.6%		0.5%
JPY	Industrial Production (MoM) (Jun)	1.1%	0.8%		0.8%
JPY	Tertiary Industry Activity Index	0.3%	0.1%		-0.7%
CNY	Fixed Asset Investment (YoY) (Jul)	11.2%	11.5%		11.4%
CNY	Industrial Production (YoY) (Jul)	6.0%	6.6%		6.8%
GBP	Average Earnings Index +Bonus (Jun)	2.4%	2.8%		3.2%
GBP	Claimant Count Change (Jul)	-4.9K	1.5K		0.2K
GBP	Unemployment Rate (Jun)	5.6%	5.6%		5.6%
EUR	Industrial Production (MoM) (Jun)	-0.4%	-0.2%		-0.4%

Upcoming Economic Events that you should be monitoring:

Friday, August 14, 2015

Cur.	Event	Actual	Forecast	Previous
NZD	Core Retail Sales (QoQ)		0.7%	2.9%
EUR	German GDP (QoQ) (Q2)		0.5%	0.3%
EUR	Core CPI (YoY) (Jul)		1.0%	1.0%
EUR	CPI (MoM) (Jul)		-0.6%	0.0%
EUR	GDP (QoQ) (Q2)		0.4%	0.4%
USD	PPI (MoM) (Jul)		0.1%	0.4%
CAD	Manufacturing Sales (MoM) (Jun)		2.1%	0.1%
USD	Industrial Production (MoM) (Jul)		0.3%	0.3%
USD	Michigan Consumer Sentiment (Aug)		93.5	93.1