EUR/GBP Fundamental Analysis October 21, 2013 Forecast

Analysis and Recommendations:

The EUR/GBP  eased by 10 pips as the pound outshined the euro in today’s session. British retail sales data on Thursday beat forecasts, supporting hopes that the economy recorded strong third-quarter growth. Preliminary gross domestic product data is released on Friday next week. While the euro saw no data of consequence over the past few days and its overall gain has been fueled by weakness in the US dollar. Sterling rallied by around 0.4 cents against the euro yesterday as the robust UK Retail Sales reading, coupled with Wednesday’s encouraging drop in Jobless Claims, led to a renewed wave of optimism towards the Pound.

The UK economy expanded by 0.7% in the second quarter and analysts expect output to have accelerated to around 0.8% in Q3; it will take a quarterly growth score of around 1.0% to give Sterling a significant boost. Sterling was also supported by a rise in interest rate hike speculation, which made UK Gilts more attractive to speculative investors. 44% of Britons now expect a first interest rate rise to take place within the next 12 months, up from 33% a month earlier.

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 October 18, 2013 actual v. forecast

 

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

Government Bond Auction

Date Time Country 

Oct 21 09:00 Slovakia

Oct 22 00:30 Japan

Oct 22 08:30 Spain

Oct 23 09:30 Germany

Oct 23 14:30 Sweden

Oct 23 15:30 Italy

Oct 24 11:00 Norway

Oct 24 15:00 US

Oct 24 15:30 Italy

Oct 24 17:00 US

Oct 25 15:30 Italy