EUR/GBP Fundamental Analysis – June 25, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP added 15 points to trade at 0.7114 as the euro rebounded ignoring lackluster German data. The pound also gained as the dollar dipped but showed little reaction to a miss in BBA mortgage approvals.  Fears about the risk of a default have prompted savers to withdraw billions from Greek banks, forcing the European Central Bank to increase emergency liquidity assistance to keep them afloat.

Ifo economist Klaus Wohlrabe said the Greek crisis was not yet hitting orders but it was causing uncertainty.  While German economic growth slowed to 0.3% in the first quarter, many economists expect it to grow faster in the three months from April to June given that the latest data has shown orders, output, exports and retail sales all rising.

Earlier this week the finance ministry said the German economy had a good start to the second quarter and indicators pointed to the upturn continuing.

Mortgage approvals in Britain rose in May to their highest level since March last year, according to data from the British Bankers’ Association on Wednesday. Approvals for house purchase rose to 42,530 from 42,020 in April, up around 4 percent compared with a year ago, the BBA said.

“The numbers show that the property market remains buoyant after the general election,” said Richard Woolhouse, chief economist at the BBA.

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:

 

Upcoming Economic Events that you should be monitoring:

Thursday, June 25, 2015

Government Bond Auctions

Date Time Country

Jun 23 15:30 Italy Announces details of CTZ on 26 Jun

Jun 23 17:00 US Auctions 2-year notes

Jun 24 09:15 Norway Holds bond auction

Jun 24 16:00 US Auctions 2-year FRNs

Jun 24 17:00 US Auctions 5-year notes

Jun 25 09:10 Italy Auctions BTPei

Jun 25 15:30 Italy Announces details of BTP/CCTeu on 30 June

Jun 25 17:00 US Auctions 7-year notes

Jun 30 11:10 Italy Auctions BTPs/CCTeus

Jun 29 11:30 Germany Eur 1.5bn 12M (Jun 2016) Bubills

Jul 01 11:30 Germany Eur 5bn Oct 2020 Bobl

Jul 02 10:30 Spain Auctions Bonos

Jul 02 11:10 France Auctions OATs

Jul 02 11:30 UK Conventional Gilt auction

Jul 02 18:00 US Details 3/10 year notes, plus 30-year bond