EUR/GBP Fundamental Forecast – June 23, 2016

The EUR/GBP traded mostly range bound on Wednesday but with a slight upside bias, closing at .7686, up 0.0014 or 0.18%. Position-squaring helped drive the Forex pair higher with short-covering driving the Euro higher and profit-takers driving the British Pound lower.

The Forex pair was tentatively higher on the last day of campaigning before Britain’s referendum on EU membership after a swing in polls towards “remain” earlier this week.

Recent opinion polls have mostly shown a shift towards keeping Britain in the European Union, but there are some signs that momentum has stalled for the “In’ camp and to some, the race still looks too close to call.

Some banks are not in the market today, or they are just in for commercial orders, ahead of the vote, so the EUR/GBP is likely to remain range bound most of the session. Although the odds seem to favor “Remain”, it’s still 50/50, and no one wants to be caught on the wrong side of the news.

FxEmpire provides in-depth analysis for each asset 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, which covers the current week and are published by Sunday before the new week begins. Daily we share any new events, forecasts or analysis that affect the current day. To achieve a full accurate understanding it is important that you study all of our data and analysis as a whole.

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Thursday, June 23, 2016

Government Bond Auctions

Jun 22 11:03 Sweden Holds bond auction

Jun 22 11:30 Germany Eur 1bn 2.5% Aug 2046 Bund

Jun 22 17:20 Italy Details of Zero-coupon/BTPei auction