EUR/GBP Fundamental Analysis – August 26, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP dipped 100 points as the euro returned some of its safe haven gains. The pair is holding at 0.7266. Recent UK economic data has sent mixed signals to the BoE. The housing market and rebound in core inflation look strong enough to warrant higher interest rates, some economists say, but the last retail sales figures were well short of economists’ expectations.

Sterling was 1.3 percent higher against the euro at 72.68 pence per euro, having fallen to a three-month low of 74.21 pence on Monday when it lost more than 2 percent, its biggest fall since 2009.

Sterling ended last week at its weakest point against the euro for two months, as investors reacted favorably to the news of Greek Prime Minister Alexis Tsipras’s resignation and the call for snap elections — although the British currency was able to push higher against the US dollar, as economists pushed back their bets on when the Federal Reserve would raise interest rates.

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:

 

Upcoming Economic Events that you should be monitoring:

Wednesday, August 26, 2015

Government Bond Auctions

Date Time Country

Aug 25 00:00 UK Announces details of Jan 2021 gilt

Aug 25 17:30 Italy Announces details of BTP/CCTeu on 28 Aug

Aug 25 19:00 US Holds 2-year note auction

Aug 26 11:10 Italy Eur 3bn 0.15% Aug 2017 CTZ

Aug 26 19:00 US Holds 2-year FRN note auction

Aug 26 12:05 Norway Holds bond auction

Aug 26 19:00 US Holds 5-year note auction

Aug 26 19:00 US Holds 2-year FRN auction

Aug 27 11:03 Sweden Sek 0.5bn 0.125% I/L Jun 2019, Sek 0.5bn 1% Jun 2025 bonds

Aug 27 19:00 US Holds 7-year note auction

Aug 28 11:10 Italy Auctions BTPs/CCTeus

Sep 01 11:15 Austria Holds RAGB bond sale

Sep 01 00:00 UK Announces details of 3.5% 2045 Gilt

Sep 02 11:03 Sweden Holds bond auction

Sep 02 11:30 Germany Eur 4bn 0.25% Oct 2020 Bobl

Sep 02 11:30 UK Auctions new Jan 2021 Gilt

Sep 03 10:30 Spain Auctions Bonos/Obligaciones

Sep 03 11:10 France Auctions OATs

Sep 03 00:00 US Announces details of 3yr note on 08 Sep, 10yr note on 09 Sep

Sep 03 00:00 US Announces details of 10-year note on 09 Sep