EUR/GBP Fundamental Analysis – August 18, 2015 – Forecast

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Published: Aug 17, 2015, 11:16 UTC

Analysis and Recommendations: The EUR/GBP is slightly down as the euro is trading with a negative bias and the pound is flat today. The pair is trading at

EUR/GBP Fundamental Analysis – August 18, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP is slightly down as the euro is trading with a negative bias and the pound is flat today. The pair is trading at 0.7100. Sterling hovered near a one-month low against the euro, as investors pushed back their expectations of when UK interest rates would start to rise amid global growth worries.

The euro hit 71.70 pence earlier in the week after China devalued the yuan, sparking fears of an escalation in a global “currency war”. That saw investors who had held euro-funded positions on emerging market currencies buy back the euro as their appetite for risk waned.

Construction data showing British construction output returned to moderate growth in June appeared to have no impact on the pound.

Sterling had lost ground on Wednesday after data showed British wage growth slowed more than expected in June, taking some pressure off the BoE to raise rates. A Reuters poll released on Thursday showed economists still expect a rate hike early next year, but conviction was wavering.

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
JPY	GDP (QoQ) (Q2)	-0.4%	-0.5%	1.1%
JPY	GDP (YoY) (Q2)	-1.6%	-1.9%	4.5%
EUR	Trade Balance (Jun)	26.4B		18.8B
USD	NY Empire State Manufacturing Index		5.00	3.86
CAD	Foreign Securities Purchases (Jun)			-5.45B