EUR/GBP Fundamental Analysis, March 13, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP added 6 points to trade at 0.7072 but it continues to threaten the 70 level as the pound is stronger on better than expected trade data. The Eurozone saw a drop in industrial production which will weigh on the currency through today’s session.  The eurozone economy picked up in the final three months of last year, growing at a modest rate of 0.3%, compared with 0.2% in the third quarter.

With the economy growing weakly and consumer prices in decline, the European Central Bank Monday launched a new stimulus program under which it will buy more than €1 trillion ($1.06 trillion) of mostly government bonds by September 2016. That has helped steepen the euro’s fall against the dollar.

While some recent surveys have indicated that the fall in oil prices and the prospect of fresh easing by the ECB were delivering a boost to parts of the economy in the early months of 2015, the surprise decline in industrial output shows that large parts of the eurozone economy remain weak.

Britain’s overall trade deficit narrowed to its smallest since mid-2013 in January, helped by a surge in exports of services and the plunge in oil prices, official data showed on Thursday.

The Office for National Statistics said the total deficit shrank to 616 million pounds from 2.14 billion pounds in December.

The deficit in goods trade also narrowed to 8.41 billion pounds, its smallest since March of last year. Economists had forecast a gap of 9.7 billion pounds in the goods trade balance.

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 actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Friday, March 13, 2015

Government Bond Auctions

Date Time Country

Mar 18 11:30 Germany Eur 4bn Feb 2025 Bund

Mar 18 16:30 Sweden Details bond sale on 25 Mar

Mar 19 11:10 France Auctions BTANs

Mar 19 12:10 France Auctions OATi

Mar 19 11:10 Sweden Holds inflation-linked bond auction

Mar 19 11:30 UK Auctions conventional Gilt

Mar 19 17:00 US Announces 2-yr FRN, plus 2/5/7 yr Notes

Mar 19 19:00 US Auctions 10-yr TIPS