EUR/GBP Fundamental Analysis – August 27, 2015- Forecast

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Published: Aug 26, 2015, 12:06 UTC

Analysis and Recommendations: The EUR/GBP dipped 29 points as the pound outperformed the euro as traders continue to assess exposure to China. Sterling

EUR/GBP Fundamental Analysis – August 27, 2015- Forecast

Analysis and Recommendations:

The EUR/GBP dipped 29 points as the pound outperformed the euro as traders continue to assess exposure to China. Sterling rose against the euro on Wednesday, with some investors viewing Britain’s currency as a safer haven given the country’s relatively limited trade exposure to China.

Traders said the global market focus on an economic slowdown in China is likely to impact sterling less than commodity currencies like the Australian and New Zealand dollars . Imports from China account for just 8.7 percent of Britain’s total, while the share of its exports to China is even lower.

The pound was flat against the dollar with investors unsure about the timing of expected increases in both British and U.S. interest rates.

Fears of a global slowdown have intensified in recent days after China devalued its currency and data pointed to further signs of weakness. These factors have deepened a sell-off in Chinese stocks and triggered volatility in global stock markets.

“We remain cautious of the global growth outlook and, on balance, believe that interest rate increases, both in the US and here in the UK, are further off than consensus has hitherto believed,” British fund manager Neil Woodford, of Woodford Investment Management, wrote in a blog.

“With respect to the UK, where growth has been comparatively strong globally, we worry about the unbalanced nature of that growth,” he added, pointing to a disproportionate rise in consumer spending and a growing balance of payments deficit.

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	-7.300M	1.900M	-2.300M
NZD	Trade Balance (MoM) (Jul)	-649M	-750M	-194M
NZD	Trade Balance (YoY) (Jul)	-2,690M	-2,660M	-2,850M
AUD	Construction Work Done (QoQ) (Q2)	1.6%	-1.5%	-0.8%
GBP	BBA Mortgages	46.0k	46.0k	44.8k

Upcoming Economic Events that you should be monitoring:

Thursday, August 27, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Private New Capital Expenditure		-2.5%	-4.4%
GBP	Nationwide HPI (YoY) (Aug)		3.1%	3.5%
GBP	Nationwide HPI (MoM) (Aug)		0.4%	0.4%
EUR	Spanish GDP (QoQ) (Q2)		1.0%	1.0%
RUB	Central Bank reserves (USD)			362.9B
USD	GDP (QoQ) (Q2)		3.2%	2.3%
USD	GDP Price Index (QoQ) (Q2)		2.0%	2.0%
USD	Initial Jobless Claims		274K	277K
USD	Pending Home Sales (MoM) (Jul)		1.0%	-1.8%