EUR/GBP Fundamental Analysis – November 11, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP is down 4 points as the euro declined today on fears of a worsening economy and the pound remained stable recovering from last week’s Bank of England tone. The pair is trading at 0.7109.

The euro has fallen 5 percent since European Central Bank President Mario Draghi said on Oct. 22 that officials will reexamine their monetary stimulus program in December and that they’ve discussed cutting the bank’s deposit rate to boost inflation.

“We have got a lot of news pretty much baked in the cake,” Kit Juckes, a strategist at Societe Generale SA in London, said in an interview on Bloomberg Television’s “On The Move” with Manus Cranny. “If you think you’re going to get euro-dollar significantly lower, you need to get an ECB rate cut, a Fed rate hike and some new additional impetus.”

The pound continues to look to many strategists like one of the currencies most exposed to an expected further global rally for the dollar after another perceived about-face by the Bank of England on interest rates last week.

Shockingly strong U.S. jobs data on Friday bolstered expectations of a rise in U.S. interest rates next month and a resulting surge for the dollar towards parity with the euro.

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:

Wednesday, November 11, 2015

Government Bond Auctions

Date Time Country

Nov 09 13:00 Norway Details bond auction on 11 Nov

Nov 09 16:30 Italy Announces details of BTPs/CCTeu on 12 Nov

Nov 09 19:00 US Holds 3-year note auction

Nov 10 11:00 Holland Eur 2.0-3.0bn 0% Apr 2018 DSL

Nov 10 11:30 UK 0.125% 2058 I/L Gilt auction

Nov 10 19:00 US Holds 10-year note auction

Nov 11 11:03 Sweden Holds bond auction

Nov 11 11:30 Germany Eur 3bn 0.25% Oct 2020 Bobl

Nov 11 12:15 Norway Holds bond auction

Nov 12 11:10 Italy Auctions BTPs/CCTeus

Nov 12 11:30 UK 4.25% 2039 Gilt auction

Nov 12 19:00 US Holds 30-year bond auction

Nov 18 11:30 Germany New Eur 5bn Dec 2017 Schatz

Nov 18 10:30 UK 2% 2025 Gilt auction

Nov 18 10:30 Portugal Eur 1-1.25bn; bond auction

Nov 18 15:30 Sweden Announces details of Bond on 25 Nov

Nov 18 N/A Holland Announces details of Bond on 24 Nov

Nov 19 09:30 Spain Auctions Bonos/Obligaciones

Nov 19 10:50 France Auctions BTANs

Nov 19 11:50 France Auctions OATi

Nov 19 N/A US Holds 10-year TIPS auction

Nov 20 16:30 Italy Announces details of CTZ/BTPei on 25 Nov