EUR/GBP Fundamental Analysis July 31, 2012, Forecast

Analysis and Recommendations:

The EUR/GBP followed the global markets today, with the euro dipping against its trading partners after two days of intervention by politicians last week pushing the euro on Thursday and Friday. Losses were limited by the weakness in the GBP after CBI data disappointed today.

Markets are waiting to see the response from the BoE, after dire warning were issued by the IMF a few weeks ago and the UK GDP release last week showed that the UK was deep in recessionary territory.

Thursday’s BoE meeting is the main event for GBP, though domestic PMI’s (Wednesday through Friday) and external factors should also provide for a considerable amount of movement.  GBPUSD is currently trading at the upper end of its two month range, and further gains are likely to be challenging given concerns over BoE policy.  The BoE acted last month, expanding its asset purchase program by £50bn, leading most market participants to believe that policy will remain unchanged

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 for July 30, 2012 actual v. forecast

 

Upcoming Economic Events that affect the CHF, EUR and GBP

Government Bond Auctions

Date  Time  Country 

Jul 31  00:30  Japan

Jul 31  09:30  Belgium

Aug 01  09:30  Germany

Aug 01  10:00  Norway

Aug 01  13:00  US

Aug 02  08:30  Spain