EUR/GBP Fundamental Analysis January 20, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP added 22 to trade at 0.7657 as the euro recovered slightly and the pound was a bit weak.  The euro gained a bit of momentum today. The Swiss central bank’s decision to scrap its franc cap came in anticipation of the European Central Bank’s likely adoption of quantitative easing measures seen weakening the euro, Luxembourg’s finance minister told Reuters on Monday.

Last week, the Swiss National Bank unexpectedly abolished the three-year-old 1.20 ceiling on the franc against the euro, fuelling at one point a rally of up 40 per cent in the Swiss currency that sent some currency trading platforms bust.

The move, made only days after the Swiss central bank had reiterated its commitment to the peg, was ahead of a key ECB meeting on Thursday (Jan 22) that could see it approve a bond-buying scheme to fight deflation and revive growth in the euro zone.

There was a global lack of data today so the pair has just been floating on shifts in global sentiment and positioning ahead of the ECB meeting.

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 actual vs. forecast:

Today is the Martin Luther King Holiday in the US

 

Upcoming Economic Events that you should be monitoring:

Tuesday, January 20^th

Government Bond Auctions

Date      Country               Auction

Jan 20 Spain            6 & 12M T-bill auction

Jan 20 UK                Auctions conventional Gilt

Jan 21 Germany       EUR 5bn Apr 2020 Bobl

Jan 21 Norway         Holds bond auction

Jan 21 Sweden         Details bond auction on 28 Jan

Jan 22 France           Auctions BTANs

Jan 22 France           Auctions

Jan 22 US                Announces 2-yr FRN, plus 2/5/7 yr. Notes

Jan 22 Italy              Announces details of CTZ/BTPei on 27 Jan

Jan 22 US                Auctions 10-yr TIPS