EUR/GBP Fundamental Analysis July 8, 2013 Forecast

Analysis and Recommendations:

The EUR/GBP gained today after the weak pound roller over and died after the US nonfarm payroll release. The pound was weak already after Mark Carney surprised markets with a very dovish report from the BoE yesterday which saw the pound tumble. Cable gave up 189 points against the greenback while the euro weakened also but only by ½ the amount of the pound. The drop in sterling follows a statement from Mark Carney’s first policy meeting that sought to quash investor expectations that the bank preparing to reduce monetary stimulus. The pair is trading at 0.8616 up by 48 points.

Under the chairmanship of the new governor, the monetary policy committee issued an unexpected statement to indicate that despite a rise in inflation there was no need for the sharp rise in yields on government bonds, known as gilts. That sent stock markets soaring and the pound tumbling, as traders and analysts debated whether Carney was more ready than previously thought to inject another lump of electronic cash into the economy under the Bank’s quantitative easing (QE) scheme.

The European Central Bank (ECB) also took steps to quell investors’ fears that it too was getting ready to tighten policy. Mario Draghi, head of the ECB, said on Thursday that the eurozone’s central bank was taking unprecedented steps to give so-called forward guidance to reassure the markets that it had no plans to raise interest rates soon. The ECB, which is facing a new crisis in Portugal, had even discussed a rate cut, Draghi added.

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 July 5, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Jul 08 09:30 Germany

Jul 08 15:30 Italy

Jul 09 08:10 Holland

Jul 09 09:10 Norway

Jul 09 09:30 UK

Jul 09 17:00 US

Jul 10 09:10 Italy

Jul 10 09:30 Germany

Jul 10 09:30 Swiss

Jul 10 17:00 US

Jul 11 09:10 Italy

Jul 11 14:30 UK

Jul 11 15:00 US

Jul 11 17:00 US

Jul 12 10:30 Belgium