EUR/GBP Fundamental Analysis October 27, 2014 Forecast

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Updated: Aug 25, 2015, 03:00 UTC

Analysis and Recommendations: The EUR/GBP is flat today to trade at 0.7889 as both currencies traded on an up note but with little volume. There are

EUR/GBP Fundamental Analysis October 27, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP is flat today to trade at 0.7889 as both currencies traded on an up note but with little volume. There are several reasons why British growth might continue to slow into the end of the year, including the recent burst of financial market volatility and growing signs of renewed stagnation in the euro zone.

A persistently wide current account deficit, deteriorating public finances and weak wage growth that dampens consumer spending are also factors.

Earlier this week, BoE chief economist Andy Haldane said he was “gloomier” on the economy, implying that interest rates could remain “lower for longer”.

The ECB says that lenders have strengthened their balance sheets by almost 203 billion euros, partly under the pressure of the Comprehensive Assessment. Yet less than a third of that figure is common equity, the highest-quality form of capital, and policy makers have signaled this headline number doesn’t quell all doubts. The ECB has poured resources into the health check and pushed national regulators and banks to take a more conservative view of their books than before.

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	Trade Balance (MoM)	-1,350M	-700M	-472M
NZD	Trade Balance (YoY)	650M	1,510M	2,020M
EUR	GfK German Consumer	8.5	8.0	8.4
GBP	GDP (QoQ) (Q3)	0.7%	0.7%	0.9%
GBP	GDP (YoY) (Q3)	3.0%	3.0%	3.2%
USD	New Home Sales (Sep)		470K	504K
USD	New Home Sales		-5.8%	18.0%

Upcoming Economic Events that you should be monitoring:

Cur.		Event	Actual	Forecast	Previous
	Holiday	New Zealand – Labour Day
EUR		German Business Expect		98.4	99.3
EUR		German Current Assess		109.5	110.5
EUR		German Ifo Climate Ind		104.1	104.7
USD		Pending Home Sales		0.3%	-1.0%