EUR/GBP Fundamental Analysis June 11, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP tumbled 18 points to trade at 0.8071 as traders abandoned the euro and the pound saw some strength of manufacturing and industrial production met expectations. British industrial production data could give Sterling a little bit of a boost later this morning and there is also potential for GBP gains if tomorrow’s UK labor market report prints positively. Analysts anticipate a drop in the jobless rate from 6.8% to a new 5-year low of 6.7%. This would likely be seen as a step in the right direction towards an economic climate appropriate for tighter monetary policy.

More stimulus from the European Central Bank (ECB) is coming, and inevitable. After years of denial over just how severe deflationary pressures in Europe actually are, Draghi and crew are finally starting to act. Last week’s announcement of a multi-pronged approach to boost lending got investors excited

After all the European Central Bank frenzy last week, it’ll be tough for this week not to look dull in comparison. But what it lacks in ECB excitement, we could make up for with Bank of England rate-hike second-guessing. A raft of U.K. labor-market data is due, and that looks set to stir the pot.

Unlike the euro zone, the U.K. has an economic recovery on full speed, well-tamed inflation rates and a steady decline in unemployment. And with the fastest-growing economy in the West comes speculation on when the BOE with pull back from its emergency settings, which have kept its main lending rate at a record low of 0.5% since March 2009.

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 June 10, 2014 actual v. forecast

 

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

Government Bond Auction

Date Country 

June 11 USD

June 12 Italy

June 12 Spain

June 12 USD