EUR/GBP Fundamental Analysis – January 7, 2016 – Forecast

Analysis and Recommendations:

The EUR/GBP gained 7 points to trade at 0.7333 as the euro remained flat after solid data out of the Eurozone helped the euro hold its place while UK services PMI missed forecast sending the pound down.

Germany’s services PMI gauge rose 56.0 points, better than the preliminary result of 55.4, hitting 17-month high. While the euro zone PMI Composite Output Index rose to 54.3 in the final month of 2015, against 54.2 seen in November.

However, the downside remains cushioned on the back of persisting weakness in the pound against the greenback, with markets now awaiting the UK services PMI data for further momentum.

Germany’s final composite Purchasing Managers’ Index, which tracks activity in the manufacturing and services sectors that together account for more than two-thirds of the economy, rose to 55.5 in December from 55.2 the previous month. That was well above the 50 line that separates expansion from contraction for the 32nd month running and also higher than a preliminary flash estimate of 54.9.

Service sector activity hit a 17-month high as new business continued to grow at a robust pace and firms in this sector were feeling more optimistic about their outlook for the next 12 months than at any point since March 2015.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

Today’s economic releases:

 

Upcoming Economic Events that you should be monitoring:

Thursday, January 7, 2016

Government Bond Auctions

Date Time and Country

Jan 07 10:50 France Holds bond auction

Jan 07 11:30 UK GBP1.5bn 4% Jan 2060 Gilt

Jan 07 n/a US Announces details of 3-yr note auction on Jan 12

Jan 07 n/a US Announces details of 10-yr note auction on Jan 13

Jan 07 n/a US Announces details of 30-yr bond auction on Jan 14

Jan 08 17:20 Italy Announces details of BTP/

Jan 11 12:00 Norway Announces details of bond auction on Jan 13

Jan 12 11:00 Austria Holds bond auction

Jan 12 11:00 Netherlands Euro 1-1.5bn 2.5% 2033 DSL

Jan 12 11:30 UK 0.125% 2046 Inflation-linked Gilt

Jan 12 n/a UK Announces details of Gilt auction on Jan 20

Jan 12 19:00 US Holds 3-year note auction

Jan 13 11:05 Norway Holds bond auction

Jan 13 11:10 Italy Holds BTP

Jan 13 11:30 Germany Euro 5bn Feb 2026 Bund

Jan 13 19:00 US Holds 10-year note auction

Jan 14 10:30 Spain Auctions Bonos/Obligaciones (Linkers?)

Jan 14 19:00 US Holds 30-year bond auction

Jan 14 n/a US Announces details of 10-yr TIPS auction on Jan 21

Jan 18 11:00 Belgium Holds OLO auction