Analysis and Recommendations: The EUR/GBP is flat today trading at 0.7875 as sentiment sends the pound and the euro climbing now that traders breathe a
The EUR/GBP is flat today trading at 0.7875 as sentiment sends the pound and the euro climbing now that traders breathe a sigh of relief as the ECB bank stress test did not hold any surprises. While the ECB was successful in completing a program for 60 billion euros of covered bonds started in 2009, it struggled in a second round to meet a 40-billion euro target, buying only 16.4 billion euros. So far this round, the central bank has only bought in the secondary market, according to people familiar with the purchases. Bundesbank President Jens Weidmann to Belgian central bank governor Luc Coene have said they want to judge how well the measures are working before considering other options. Governing Council member Ardo Hansson said policy makers should refrain from additional measures as current stimulus works its way through to the economy.
Covered bond and ABS purchases appear to be the line of least resistance for the ECB. German opposition to sovereign-bond purchases means officials have chosen covered bonds and asset-backed securities as the latest tools to help expand the balance sheet. While policy makers say their plans will spark new issuance, economists at firms including Morgan Stanley and Commerzbank AG say the central bank will probably need to buy other assets to reach the target.
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 |
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USD |
Pending Home Sales |
|
0.5% |
-1.0% |
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Upcoming Economic Events that you should be monitoring:
Cur. |
Event |
Actual |
Forecast |
Previous |
|||
|
JPY |
Retail Sales (YoY) (Sep) |
|
0.6% |
1.2% |
|
|
|
USD |
Core Durable Goods |
|
0.5% |
0.4% |
|
|
|
USD |
Durable Goods Orders |
|
0.6% |
-18.4% |
|
|
|
USD |
S&P/CS HPI Composite |
|
5.8% |
6.7% |
|
|
|
USD |
Consumer Confidence |
|
87.0 |
86.0 |
Government Bond Auction
Date Time Country Auction
Oct 28 12:10 Italy BOT auction
Oct 28 19:00 US 2Y Note auction
Oct 29 12:03 Sweden Bond auction
Oct 29 12:30 Germany Eur 4.0bn Aug 2024 Bund auction
Oct 29 17:30 US 2Y FRN auction
Oct 29 19:00 US 5Y Note auction
Oct 30 12:10 Italy BTP/CCTeu auctions
Oct 30 19:00 US 7Y Note auction