EUR/GBP Fundamental Analysis October 14, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP gained 24 points as the euro outshined the pound in today’s session which was void of economic data. The pair gained to trade at 0.7881. The UK economy has been growing strongly this year – with GDP rising by 0.9% between April and June, following a 0.7% rise in the previous quarter – and is on course to outperform many other developed economies this year. However, recent figures have suggested that growth in the manufacturing sector is beginning to slow, partly due to a slowdown in the eurozone economy.

In addition, the recovery in the UK economy has not filtered through to inflation, which fell to 1.5% in August. With inflation below the Bank’s target rate of 2%, there is less pressure to raise rates to curb rising prices.

 In an interview with US news channel CNN on Monday Mr Carney said weakness in the eurozone had been a major theme at the IMF meeting in Washington.

“The only difficulty that is caused by Europe is that it provides an additional drag on growth. But that doesn’t dictate the monetary policy of the Bank of England,” he said.

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 actual vs. forecast:

 

Upcoming Economic Events that you should be monitoring:

Government Bond Auction

Date Time Country Auction

Oct 14 08:30 Spain 6 & 12M T-bill auction

Oct 14 09:30 Belgium 3 & 12M T-bill auction (Jan & Oct 2015)

Oct 15 09:03 Sweden Bond auction

Oct 15 09:30 Germany Eur 4.0bn Sep 2016 Schatz auction

Oct 16 08:30 Spain Bono/Obligacion auction

Oct 16 09:30 UK Auctions 0.125% 2024 I/L Gilt

Oct 16 15:00 US Announces details of 30Y TIPS auction on Oct 23