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
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 |
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