EUR/GBP Fundamental Analysis – August 14, 2015 – Forecast

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Published: Aug 13, 2015, 12:22 UTC

Analysis and Recommendations: The EUR/GBP dipped 29 points to 0.7117 as the euro eased off of yesterday’s absurd rally. The pound traded flat with no data

EUR/GBP Fundamental Analysis – August 14, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP dipped 29 points to 0.7117 as the euro eased off of yesterday’s absurd rally. The pound traded flat with no data on the calendar today. Early in the morning the RICS house price balance printed in the green. Eurozone inflation held near 0.2% in Germany. Earlier in the morning, China’s yuan opened weaker as China’s central bank guided its currency lower for a third day. The People’s Bank of China said later that it has the ability to maintain a stable yuan and again dismissed the view that there is any economic basis for continued yuan weakness.

A relatively calmer reaction in the currency market shows how “investors are gradually learning how China will handle this issue,” said Mizuho Securities chief FX strategist Kengo Suzuki.

The pound strengthened against the euro, halting a two-day decline, after a report showed U.K. house prices rose to the highest in a year.

U.K. government bonds fell as stocks rose across Europe, damping demand for the safest assets, after China’s central bank eased concern that a disorderly devaluation of yuan may happen. The euro climbed versus most major currencies, including sterling, in the past two days as investors spooked by China’s surprise devaluation unwound so-called carry trades in which they used the common currency to fund higher-yielding assets.

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
NZD	Business NZ PMI (Jul)	53.5		55.2
GBP	RICS House Price Balance (Jul)	44%	42%	40%
AUD	RBA Assist Gov Kent Speaks
EUR	German CPI (MoM) (Jul)	0.2%	0.2%	0.2%
EUR	Spanish CPI (YoY) (Jul)	0.1%	0.1%	0.1%
EUR	Spanish HICP (YoY) (Jul)	0.0%	-0.1%	-0.1%
CHF	PPI (MoM) (Jul)	-0.3%	-0.2%	-0.1%
EUR	Account of Monetary Policy Meeting

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