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EUR/GBP Fundamental Analysis October 7, 2014 Forecast

By:
Barry Norman
Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendations: The EUR/GBP added 12 points as the euro regained some momentum as traders reviewed last week’s ECB decision. The pound

EUR/GBP Fundamental Analysis October 7, 2014 Forecast
EUR/GBP Fundamental Analysis October 7, 2014 Forecast
EUR/GBP Fundamental Analysis October 7, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP added 12 points as the euro regained some momentum as traders reviewed last week’s ECB decision. The pound remains a bit weak ahead of the BoE meeting this week.  One of the factors behind the surge in demand has been the country’s low borrowing costs. While economists predict the BOE’s Monetary Policy Committee will vote to keep its benchmark interest rate at a record-low 0.5 percent this week, some forecast an increase by February as the economy improves. Officials are set to meet tomorrow and Oct. 8 and will announce their latest decision at noon in London on Oct. 9.

Signs of cooling property demand may ease concern that the market is overheating, leading to an unsustainable increase in debt. The central bank’s Financial Policy Committee said last week that it had asked the government for more powers to limit mortgage lending after already seeking to curb riskier lending with loan-to-income caps.

The euro is facing a completely different obstacle. Deteriorating confidence is undermining a rebound in Germany’s economy from a second-quarter slump. The 18-nation euro region is struggling to sustain its recovery amid rising political tension with Russia over its support of separatists in Ukraine and inflation that’s running at a fraction of the European Central Bank’s definition of price stability.

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

  EUR

German Factory Orders

-5.7%

-2.5%

4.9%

 

  CAD

Ivey PMI 

 

53.0

50.9

 

 

eurgbp

Upcoming Economic Events that you should be monitoring:

Currency

 

   

JPY

Monetary Policy Statement

AUD

Cash Rate

AUD

RBA Rate Statement

JPY

BOJ Press Conference

CHF

Foreign Currency Reserves

GBP

Halifax HPI m/m

CHF

CPI m/m

CHF

Retail Sales y/y

GBP

Manufacturing Production m/m

GBP

BOE Credit Conditions Survey

CAD

Building Permits m/m

GBP

NIESR GDP Estimate

USD

JOLTS Job Openings

Government Bond Auction

Date Time Country Auction

Oct 07 06:00 Swiss Announces details of optional bond auction on Oct 08

Oct 07 09:00 Norway Bond auction

Oct 07 09:15 Austria RAGB auction

Oct 07 9:30 UK Auctions 3.5% 2045 Gilt

Oct 07 15:30 Italy Announces details of BOT auction on Oct 10

Oct 07 17:00 US 3Y Note auction

Oct 08 09:30 Germany Eur 4.0bn Oct 2019 Bobl auction

Oct 08 09:30 Swiss Bond auction (for decision)

Oct 08 15:30 Italy Announces details of BTP

Oct 08 17:00 US 10Y Note auction

Oct 09 09:03 Sweden I/L bond auction

Oct 09 17:00 US 30Y bond auction

Oct 10 09:10 Italy BOT auction

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