EUR/GBP Fundamental Analysis December 21, 2012, Forecast

Analysis and Recommendations:

The EUR/GBP  is totally flat trading at 0.8140, which is a bit surprising after UK retail sales plummeted both month over month and year over year printed below expectations. There was no data in the eurozone today and news flow was light ahead of the holidays. Trading volume is beginning to decline as traders are leaving the markets ahead of the year end. The next coming days are expected to be very quiet with light volume.

Traders said sterling was also lifted in thin trade by year-end demand for the currency from companies looking to hedge and from central banks.

UK annual consumer price inflation unexpectedly remained at 2.7 percent in November after a surprise jump the month before, which is likely to reinforce the central bank’s concerns about price pressures proving persistent. The market consensus had been for inflation to dip to 2.6 percent. Some analysts said the pound could lose some ground if the minutes from the bank’s latest Monetary Policy Committee (MPC) meeting show a more dovish bias.

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.

Economic Data December 20, 2012 actual v. forecast

 

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Government Bond Auction

Date Time Country 

Dec 21 16:30 Italy  

Dec 26 01:30 Japan 

Dec 27 10:10 Italy  

Dec 28 10:10 Italy