EUR/GBP Fundamental Analysis October 29, 2014 Forecast

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Updated: Aug 25, 2015, 07:00 UTC

Analysis and Recommendations: The EUR/GBP is moving between small gains and losses today, with no news from the eurozone or the UK and nothing on the

EUR/GBP Fundamental Analysis October 29, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP is moving between small gains and losses today, with no news from the eurozone or the UK and nothing on the economics calendar, the pair is expected to hold at 0.7877 for the balance of the trading day. Last week, 144 banks asked for €92.9B of liquidity. Since the low take-up at the first TLTRO, allotted amounts at the MRO have remained rather low as well. Tonight we’ll report on the outcome and implications for Eonia and excess liquidity (currently €91B). Since last week, when the MRO operation drained another €10B+ of liquidity, Eonia fixes slightly positive again. Tomorrow, the ECB also holds a 3-month LTRO tender

Yesterday, EUR/GBP followed the EUR/USD price profile till early afternoon trading. EUR/GBP fell in the morning session, following euro strength in the Asian session. A better than expected CBI retail sales report very temporarily helped EUR/GBP setting an intraday low at 0.7862, but finally the pair ended virtually unchanged and remains at 0.7877.

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
JPY	Retail Sales (YoY) (Sep)	2.3%	0.6%	1.2%
USD	Core Durable Goods		0.5%	0.4%
USD	Durable Goods Orders		0.5%	-18.4%
USD	S&P/CS HPI Composite –		5.8%	6.7%
USD	CB Con. Confidence		87.0	86.0

Upcoming Economic Events that you should be monitoring:

Time	Cur.	Imp.	Event	Actual	Forecast	Previous
	JPY		Industrial Production		2.2%	-1.9%
	NZD		Business Confidence			13.4%
	CAD		RMPI (MoM) (Sep)		-1.0%	-2.2%
	USD		FOMC Statement
	USD		Fed Funds Target Rate		0.25%	0.25%