EUR/GBP Fundamental Analysis – December 7, 2015 – Forecast

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Published: Dec 4, 2015, 14:51 GMT+00:00

Analysis and Recommendations: The EUR/GBP added 10 points as the euro remained strong today with the lack of stimulus the single currency has made broad

EUR/GBP Fundamental Analysis – December 7, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP added 10 points as the euro remained strong today with the lack of stimulus the single currency has made broad climbs. The ECB disappointed traders and left many upset on Thursday. The euro soared 3% after the announcement gaining almost 300 points and remains very strong while the US dollar continues to recover. There was no UK data today so it is simply a juggling act as traders try to find a new balance.

Sterling shed nearly 1.7 percent against a rallying euro on Thursday after the European Central Bank’s monetary easing measures fell short of market expectations, prompting speculators to trim hefty bets against the single currency.

The ECB extended its asset-purchase programme, known as quantitative easing, by six months to March 2017, but did not beef up monthly purchases as many had hoped. It also agreed to buy euro-denominated municipal and regional bonds and cut its deposit rates by 10 basis points to -0.30 percent, although this was less than money markets had priced in.

The euro’s broad gains helped the pound regain ground against the dollar, with sterling trading 1.0 percent higher on the day at $1.5104. Sterling had fallen to a 7-1/2 month low of $1.4897 on Wednesday, hurt in part by soft data that raised question marks about growth in Britain.

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
AUD	Retail Sales (MoM) (Oct)	0.5%	0.5%	0.4%
EUR	German Factory Orders (MoM) (Oct)	1.8%	1.2%	-0.7%
USD	OPEC Meeting
USD	Average Hourly Earnings (MoM)	0.2%	0.2%	0.4%
USD	Nonfarm Payrolls (Nov)	211K	200K	298K
USD	Participation Rate (Nov)	62.5%	62.4%	62.4%
USD	Private Nonfarm Payrolls (Nov)	197K	190K	304K
USD	Trade Balance (Oct)	-43.89B	-40.50B	-42.46B
USD	Unemployment Rate (Nov)	5.0%	5.0%	5.0%
CAD	Employment Change (Nov)	-35.7K	-10.0K	44.4K
CAD	Labor Productivity (QoQ) (Q3)	0.1%	0.3%	-0.9%
CAD	Trade Balance (Oct)	-2.76B	-1.70B	-2.32B
CAD	Unemployment Rate (Nov)	7.1%	7.0%	7.0%
CAD	Ivey PMI (Nov)		55.3	53.1
USD	FOMC Member Dudley Speaks
EUR	ECB President Draghi Speaks
USD	Baker Hughes U.S. Rig Count			555