EUR/GBP Fundamental Analysis May 23, 2013 Forecast

Analysis and Recommendations:

The EUR/GBP is trading at 0.8580 gaining 63 pips as the euro gained on sentiment while the pound declined on poor retail sales and disappointment in the MPC minutes. At the same time the IMF is aggressively lobbying the UK government to turn from austerity to growth. Sterling tumbled following minutes released by the Bank of England and disappointing retail sales, as the IMF warned the U.K. is at risk of “permanent damage” if its growth remains persistently slow. Sterling fell by as much as 0.5 percent as retail sales missed expectations, with total food sales plunging 4.1 percent – the largest monthly fall in almost two years.

Meanwhile, the Bank of England also surprised markets with the minutes from its latest Monetary Policy Committee meeting, which revealed that outgoing Governor Mervyn King continued to vote in favour of more quantitative easing (QE), despite stronger gross domestic product (GDP) data and inflation falling to 2.4 percent in April, its biggest fall in a year.

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 May 22, 2013 actual v. forecast

 

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

Upcoming Government Bond Auctions

Date Time Country 

May 23 02:30 Australia

May 23 05:35 Japan

May 23 10:30 Spain

May 23 11:03 Sweden

May 23 18:00 Canada

May 23 19:00 US

May 24 12:10 UK