EUR/GBP Fundamental Analysis October 24, 2014 Forecast

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Updated: Aug 25, 2015, 02:00 UTC

Analysis and Recommendations: The EUR/GBP regained a bit of momentum today after better than expected PMI data while the GBP tumbled to trade on a

EUR/GBP Fundamental Analysis October 24, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP regained a bit of momentum today after better than expected PMI data while the GBP tumbled to trade on a negative bias after weak data hit the markets. The pair added 13 points to trade at 0.7904. U.K. retail sales fell more than expected in September when compared with the previous month as the unseasonably warm weather hit clothing and shoe sales, with sales of the items decreasing almost 8 percent month-on-month.

The 18-nation shared currency weakened versus 12 of its 16 major peers. An index of French manufacturing slid to 47.3 in October, from 48.8 the previous month, Markit Economics said. The median estimate in a Bloomberg News survey of analysts was for a reading of 48.5. A similar index for the services industry fell to 48.1, below the 50 level which separates expansion from contraction for a second month.

Spanish news agency EFE, citing unnamed financial sources, said 11 euro zone banks were set to fail this weekend’s long-awaited stress tests. That followed a Reuters report on Tuesday that the European Central Bank was looking at buying corporate bonds to add to the flow of extra euros coursing through the economy.

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:

Cur.	Event	Actual	Forecast	Previous
NZD	CPI (QoQ) (Q2)	0.3%	0.5%	0.3%
AUD	Business Confidence	6		6
CNY	HSBC Mfg. PMI	50.4	50.3	50.2
EUR	French Mfg. PMI	47.3	48.5	48.8
EUR	French Services PMI	48.1	48.2	48.4
EUR	German Mfg. PMI	51.8	49.5	49.9
EUR	German Services PMI	54.8	55.0	55.7
EUR	Manufacturing PMI	50.7	49.9	50.3
EUR	Services PMI (Oct)	52.4	52.0	52.4
GBP	Mortgage Approvals	39.3K	41.5K	41.4K
GBP	Core Retail Sales (MoM)	-0.3%	-0.2%	0.3%
GBP	Core Retail Sales (YoY)	3.1%	3.4%	4.4%
GBP	Retail Sales (MoM)	-0.3%	-0.1%	0.4%
GBP	Retail Sales (YoY) (Sep)	2.7%	2.8%	3.7%
GBP	CBI Industrial Trends		-4	-4
USD	Initial Jobless Claims		282K	264K

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
NZD	Trade Balance (MoM)		-700M	-472M
NZD	Trade Balance (YoY)		1,510M	2,020M
GBP	GDP (QoQ) (Q3)		0.7%	0.9%
GBP	GDP (YoY) (Q3)		3.0%	3.2%
USD	New Home Sales (Sep)		470K	504K
USD	New Home Sales (MoM)		-5.8%	18.0%