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EUR/GBP Fundamental Analysis October 28, 2014 Forecast

By:
Barry Norman
Updated: Aug 25, 2015, 03:00 UTC

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

EUR/GBP Fundamental Analysis October 28, 2014 Forecast

EUR/GBP Fundamental Analysis October 28, 2014 Forecast
EUR/GBP Fundamental Analysis October 28, 2014 Forecast
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 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

 

  USD

 

Pending Home Sales 

 

0.5%

-1.0%

 

 

EURGBP(60 minutes)20141027094131

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

 

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