EUR/GBP Fundamental Analysis November 26, 2013 Forecast

Analysis and Recommendations:

The EUR/GBP was flat for the day with both the euro and the pound trading on a weak note. The pair is holding at 0.8354. Sterling hit a five-year peak against a broadly weaker yen on Monday and traded near an 11-month peak against a basket of currencies, helped by robust economic data and favorable rate differentials.  Mortgage approvals in Britain were 33 percent higher on the year in October, seasonally adjusted numbers from the British Bankers’ Association showed. This week investors will get the revised second-quarter GDP data on Wednesday while Bank of England Governor Mark Carney will answer questions about monetary policy and the economic outlook from lawmakers on Tuesday.

Although not a high impact event, the UK’s October mortgage approvals came well below expectations, dropping to 42,808 from a revised 43,182 reading in September. However, the number of loans increased 33% in October year on year as per the BBA’s report earlier today. Despite the slump, the UK’s housing market continues to pick up at a steady pace with new mortgage borrowings up 32% compared to October 2012 as noted by BBA’s statistics director David Dooks. The BBA said that mortgage assistance services for first time buyers were helping as the housing market activity keeps the pace.

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 November 25, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Nov 26 09:10 Holland

Nov 26 09:30 Spain

Nov 26 10:10 Italy

Nov 26 12:00 Norway

Nov 26 18:00 US

Nov 27 10:10 Italy

Nov 27 10:10 Sweden

Nov 27 10:30 Germany

Nov 27 18:00 US

Nov 28 10:10 Italy

Nov 28 10:30 UK