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EUR/GBP Fundamental Analysis December 31, 2012, Forecast

By:
Barry Norman
Updated: Aug 21, 2015, 02:00 UTC

Analysis and Recommendations: The EUR/GBP declined to trade at 0.8193 losing 29pips. The euro weakened today as traders sold off the euro to take profits

EUR/GBP Fundamental Analysis December 31, 2012, Forecast

EUR/GBP Fundamental Analysis December 31, 2012, Forecast
EUR/GBP Fundamental Analysis December 31, 2012, Forecast
Analysis and Recommendations:

The EUR/GBP declined to trade at 0.8193 losing 29pips. The euro weakened today as traders sold off the euro to take profits as the year winds down. Sterling will struggle against the euro as a UK recovery will be uneven and inflation will be high next year. For investors looking to preserve capital, sterling will not be the safe-haven that it was during the euro zone debt crisis. For much of 2012, investors seeking to flee the euro zone debt crisis headed for the perceived safety of UK gilts, which are liquid and triple-A rated. But high inflation can erode the value of an asset, making investment a tad unattractive and Britain’s is also struggling to meet its own targets on reducing a high debt burden thanks to poor growth. 

The European Central Bank’s pledge to buy peripheral euro zone bonds has improved sentiment towards the currency bloc, driving many speculators and investors to pare short bets against the single currency before the year end. 

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.

Markets will have a shortened day on Monday December 31st and most are closed on Tuesday January 1, 2013. Our analysis will be published as markets close on Monday and there will be no analysis on Tuesday. I want to wish all of my readers a happy and healthy new year. I hope you continue reading our analysis next year. 

Economic Data December 28, 2012 actual v. forecast

Date

 

Currency

 

 

Event

Actual

 

Forecast

 

Previous

 

 

Dec. 28

 

EUR

 

 

French Consumer Spending (MoM) 

0.2%

 

0.1% 

 

-0.1% 

   

 

 

EUR

 

 

French GDP (QoQ) 

0.1%

 

0.2% 

 

0.2% 

 

 

 

 

SEK

 

 

Swedish Retail Sales (MoM) 

0.30%

 

0.20% 

 

-1.80% 

   

 

 

EUR

 

 

Italian 10-Year BTP Auction 

4.48%

 

 

 

4.45% 

 

 

 

 

USD

 

 

Chicago PMI 

51.6 

 

51.0 

 

50.4 

 

 

 

 

USD

 

 

Pending Home Sales (MoM) 

 1.7%

 

1.0% 

 

5.2% 

 

 

 

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

Date

Time

Country

Event

Forecast

Previous

Jan. 01

01:00

CNY

Chinese Manufacturing PMI 

 

50.60 

Jan. 02

00:00

EUR

German CPI (MoM) 

0.7% 

-0.1% 

 

00:00

EUR

German CPI (YoY) 

1.9% 

1.9% 

 

08:00

CHF

KOF Leading Indicators 

1.38 

1.50 

 

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