EUR/GBP Fundamental Analysis November 24, 2015 – Forecast

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Published: Nov 23, 2015, 12:20 UTC

Analysis and Recommendations: The EUR/GBP gained a few points but remained more or less stable paying very little attention to better than expected PMI

EUR/GBP Fundamental Analysis November 24, 2015 – Forecast

Analysis and Recommendations:

The EUR/GBP gained a few points but remained more or less stable paying very little attention to better than expected PMI data today. The pair is trading at 0.7014. The euro was given some help as purchasing managers data showed eurozone business activity picking up at its fastest pace since mid-2011, partly thanks to the currency’s recent weakness. That also helped Europe’s main bourses claw back some of their early losses, although the woes around commodities ensured miners and oil and gas firms remained the worst performers. Fears of further militant Islamist attacks lingered in Europe. Soldiers patrolled the streets of Brussels for a third day as the hunt continued for a man believed to have masterminded this month’s Paris attacks.

ECB stimulus hopes helped underpin the region. The head of the ECB, Mario Draghi, and last week offered the strongest hint yet that the ECB will unveil fresh measures at its December 3 policy meeting.

Gains for the Pound US Dollar exchange rate on the day would have been of a greater magnitude were it not for this morning’s disappointing UK Retail Sales data for October. The British year-on-year shop sales figure printed at below-expectations 3.0% and Sterling suffered as a consequence.

The Office of National Statistics, which publishes the data, found that the below-par result was partly due to weaker than anticipated domestic purchases of food and beverages.

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:

Cur.	Event	Actual	Forecast	Previous
	Japan – Labour Thanksgiving Day
EUR	German Manufacturing PMI (Nov)	52.6	52.0	52.1
EUR	German Services PMI (Nov)	55.6	54.3	54.5
EUR	Manufacturing PMI (Nov)	52.8	52.3	52.3
EUR	Markit Composite PMI (Nov)	54.4	53.9	53.9
EUR	Services PMI (Nov)	54.6	54.1	54.1
EUR	German Buba President Weidmann

Upcoming Economic Events that you should be monitoring:

Tuesday, November 24, 2015

Cur.	Event	Actual	Forecast	Previous
EUR	German GDP (QoQ) (Q3)		0.3%	0.3%
EUR	German GDP (YoY) (Q3)		1.8%	1.8%
EUR	German Business Expectations (Nov)		104.0	103.8
EUR	German Current Assessment (Nov)		112.4	112.6
EUR	German Ifo Business Climate Index (		108.2	108.2
USD	GDP (QoQ) (Q3)		2.0%	1.5%
USD	GDP Price Index (QoQ) (Q3)		1.2%	1.2%
USD	Goods Trade Balance (Oct)			-58.63B
USD	S&P/CS HPI Composite – 20 n.s.a.		5.2%	5.1%
USD	CB Consumer Confidence (Nov)		99.5	97.6