EUR/GBP Fundamental Analysis October 8, 2014 Forecast

By:

Updated: Aug 24, 2015, 23:00 UTC

Analysis and Recommendations: The EUR/GBP eased by 17 points as the euro weakened on disappointing data after German industrial production tumbled farther

EUR/GBP Fundamental Analysis October 8, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP eased by 17 points as the euro weakened on disappointing data after German industrial production tumbled farther this month. The pound saw lackluster prints for Industrial and Manufacturing production but within reason. The pound continues to hold ahead of Thursdays Bank of England meeting. Bank of England Governor Mark Carney’s pledge to raise interest rates at a slow pace is giving gilt investors something to cheer about.

Markets are embracing his commitment, betting U.K. policy makers will increase borrowing costs more gradually than their U.S. counterparts. This will allow the nation’s bonds to continue their outperformance of Treasuries into 201.

Germany’s economy is losing steam as sluggish growth in the euro area, its largest export market, and political tension with Russia weigh on confidence. The European Central Bank has enacted unprecedented stimulus to sustain the regional recovery while calling on governments to press ahead with structural reforms. Factory orders plunged 5.7 percent in August, also the most since 2009, data showed yesterday. German manufacturing shrank in September, with new orders falling at the fastest pace since 2012, according to a survey of purchasing managers. Business confidence as measured by the Ifo research institute fell to the lowest in almost 1 1/2 years, while unemployment increased for a second month.

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
NZD	NZIER Business Confidence (Q3)	19%		32%
AUD	Interest Rate Decision (Oct)	2.50%	2.50%	2.50%
AUD	RBA Rate Statement
EUR	German Industrial Production	-4.0%	-1.5%	1.6%
JPY	BoJ Press Conference
GBP	Industrial Production (MoM)	0.0%	0.2%	0.4%
GBP	Manufacturing Production	0.1%	0.1%	0.3%
CAD	Building Permits (MoM) (Aug)		-13.0%	11.8%
USD	JOLTs Job Openings (Aug)		4.71M	4.67M

Upcoming Economic Events that you should be monitoring:

Cur.	Event	Actual	Forecast	Previous
JPY	Adjusted Current Acct.		0.19T	0.10T
JPY	Current Account n.s.a.		0.198T	0.417T
CNY	HSBC Services PMI (Sep)		53.8	54.1
JPY	BoJ Monthly Report
CAD	Housing Starts (Sep)		196.0K	192.4K
USD	FOMC Meeting Minutes