EUR/GBP Fundamental Analysis March 6, 2013 Forecast

Analysis and Recommendations:

The EUR/GBP  is trading at 0.8601 as the euro lost the battle against the pound today on PMI results and upcoming central bank meetings. A composite gauge of euro-area services and manufacturing output was 47.9 in February, versus 48.6 in January, London- based Markit Economics said in a report today. Analysts had forecast a drop to 47.3, according to the median in a Bloomberg News survey. On the other side the UK PMI for services reported above expectations supporting the pound. Traders balanced daily activity, on expectations that both the ECB and the BoE would take steps to help jump start economic growth and the recovery but the euro remains weaker.

There were already signs that the European Central Bank president was ready to shed his hawkish cloak after the Bank’s last policy meeting in February. But now, with the euro-zone recovery proving weaker than hoped, Italian politics proving as intractable as feared and the euro itself failing to fall far, there is every reason for Mr. Draghi to hint at more monetary-policy easing this time round.

Once again, economic data show that while Germany continues to pull out of recession, the rest of the euro zone is having a much rougher time and, overall, the region remains in contractionary territory.

Euro-zone retail sales figures may have shown an unexpectedly sharp 1.2% increase in January but this was due to a combination of strong German consumer activity and the introduction to a new base year for the figures, which will have flattered on the upside.

Overall, business activity is failing to live up to expectations, with the new set of service-sector purchasing managers’ indexes showing further contraction.

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 March 5, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Mar 06 10:10 Sweden

Mar 06 10:30 Germany

Mar 07 09:30 Spain

Mar 07 09:50 France

Mar 07 15:30 Sweden

Mar 07 16:30 Italy

Mar 07 16:00 US

Mar 08 11:30 Belgium

Mar 08 16:30 Italy