EUR/GBP Fundamental Analysis – August 4, 2015 – Forecast

By:

Published: Aug 3, 2015, 10:54 UTC

Analysis and Recommendations: The EUR/GBP was flat at 0.7028 as both currencies were more or less directionless. Both German and UK PMI beat expectations

EUR/GBP Fundamental Analysis – August 4, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP was flat at 0.7028 as both currencies were more or less directionless. Both German and UK PMI beat expectations by a slight bit keeping the pair balanced. Germany’s private sector grew at a slightly slower rate in July than in the previous month, a survey showed on Friday, suggesting that Europe’s largest economy lost some steam at the beginning of the third quarter.

Markit’s flash composite Purchasing Managers’ Index (PMI) tracking manufacturing and services activity which accounts for more than two-thirds of the German economy inched down to 53.4 from 53.7 in June.

UK manufacturing growth ticked higher in July as solid demand in the domestic market offset ongoing weakness in export orders. The Markit manufacturing purchasing managers’ index printed at 51.9, up from a 26-month low of 51.4 in June and a little stronger than the 51.6 analysts had expected. However, new export orders fell for the fourth straight month as the stronger pound against the euro hurt demand.

Pound traders are focused on Super Thursday as the Bank of England will start its new reporting with a speech by Governor Carney after the interest rate decision, the inflation report and MPC minutes.

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
	Canada – Civic Holiday
CNY	Caixin Manufacturing PMI (Jul)	47.8	48.3	48.2
EUR	German Manufacturing PMI (Jul)	51.8	51.5	51.5
GBP	Manufacturing PMI (Jul)	51.9	51.6	51.4

Upcoming Economic Events that you should be monitoring:

Tuesday, August 4, 2015

Cur.	Event	Actual	Forecast	Previous
AUD	Retail Sales (MoM) (Jun)		0.5%	0.3%
AUD	Interest Rate Decision (Aug)		2.00%	2.00%
GBP	Construction PMI (Jul)		58.4	58.1