Analysis and Recommendations: The EUR/GBP dipped 28 points to trade at 0.7028 as the euro tanked today as traders prepare for a massive stimulus program
The EUR/GBP dipped 28 points to trade at 0.7028 as the euro tanked today as traders prepare for a massive stimulus program from the ECB and fallout from the economic effects of terror in Paris and Belgium continue to stress the euro. George Osborne is to set out government spending plans up to 2020 later, which will include billions of pounds in cuts but also new money for house building.
The Autumn Statement and Spending Review will detail £20bn of cuts to Whitehall budgets and £12bn to welfare. But the chancellor will pledge almost £7bn to make house building a priority, with more than 400,000 “affordable homes” to be built in England.
Today, there are few eco data in Europe but the calendar in the US is well packed. Several eco releases are published earlier ahead of Thanksgiving/Black Friday.
The soft ECB stance pushed EUR/GBP lower in the longstanding sideways range. The pair cleared the 0.7196 support after the October FOMC meeting. A retest occurred after a soft BoE inflation report, but the test was rejected. We maintain a sell‐on‐upticks approach for EUR/GBP as euro weakness prevails. Next key support is this year’s low at 0.6936
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 |
||
USD |
API Weekly Crude Oil Stock |
2.600M |
-0.200M |
-0.482M |
|
||
JPY |
Monetary Policy Meeting Minutes |
|
|
|
|
||
AUD |
Construction Work Done (QoQ) (Q3) |
-3.6% |
-2.1% |
2.1% |
|||
GBP |
BBA Mortgage Approvals |
45.4 |
45.5K |
44.5K |
|
||
AUD |
RBA Assist Gov. Debelle Speaks |
|
|
|
Upcoming Economic Events that you should be monitoring:
Wednesday, November 26, 2015
Cur. |
Event |
Actual |
Forecast |
Previous |
|
||
|
United States – Thanksgiving Day |
||||||
NZD |
Trade Balance (MoM) (Oct) |
|
-937M |
-1,222M |
|
||
NZD |
Trade Balance (YoY) (Oct) |
|
-3,370M |
-3,200M |
|
||
AUD |
Private New Capital Expenditure |
|
-3.0% |
-4.0% |
|
||
EUR |
GfK German Consumer Climate (Dec) |
|
9.2 |
9.4 |
Government Bond Auctions
Date Time Country
Nov 25 11:03 Sweden Sek 4bn 1% Nov 2026 bond
Nov 25 11:10 Italy Auctions CTZ/BTPei
Nov 25 11:30 Germany Eur 3bn 1.0% Aug 2025 Bund
Nov 25 17:30 US Usd 35bn 2-year FRN
Nov 25 19:00 US Usd 29bn 7-year note
Nov 26 11:03 Sweden Sek 5bn 1% Nov 2026 bond exchange
Nov 27 11:03 Sweden 1.5% Nov 2023 bond exchange, 1% Nov 2026 bond exchange
Nov 27 11:10 Italy Auctions BTPs
Nov 27 N/A Spain Announces details of 03 Dec
Nov 30 11:03 Sweden Holds bond auction
Dec 01 11:30 UK 1.5% 2021 Gilt auction
Dec 02 16:30 Sweden Announces details of Bond on 11 Dec
Dec 03 10:30 Spain Auctions
Dec 03 10:50 France Auctions OATs
Dec 03 11:03 Sweden Holds I/L bond auction
Dec 04 11:03 Sweden Holds I/L bond auction