EUR/GBP Fundamental Forecast – September 6, 2016

The EUR/GBP is up 3 points at 0.8403 but remains at the bottom of its average trading range as the UK currency has mounted a comeback over the past sessions as economics data shows that the Brexit decision has not affected the economy as badly as first estimated. The OECD and the IMF have also chimed it to say that they are reevaluating the situation as it is not as bad as they predicted thanks to the quick actions by the Bank of England.

The euro was slightly higher at 84 pence, but not far from four-week low of 83.76 struck on Friday. Last week, both the construction and manufacturing sector surveys indicated a strong rebound in activity. While the manufacturing PMI jumped to a 10-month high of 53.3 in August, recovering from the three-year low it hit in July, the construction PMI rose to 49.2 from 45.9 in July. While that was below the 50 mark dividing growth and contraction, it beat all forecasts in a Reuters poll.

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Upcoming Economic Events that you should be monitoring:

 September 6, 2016

Government Bond Auctions

Date Time Country Auction

Sep 06 11:00 Austria Holds bond auction

Sep 06 11:30 UK 1.5% 2026 Gilt

Sep 06 11:30 Germany Holds I/L bond auction

Sep 07 10:30 Denmark Holds bond auction

Sep 07 11:03 Sweden Holds bond auction

Sep 07 11:30 Germany Eur 5bn 0% Aug 2026 Bund

Sep 08 11:00 Ireland Holds bond auction

Sep 08 17:20 Italy Announces details of bond auction