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EUR/GBP Monthly Fundamental Forecast October 2014
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Outlook and Recommendation The EUR/GBP fell to its lowest point of the month to trade at 0.7790 as the euro weakened to its lowest point on the last days
Outlook and Recommendation
The EUR/GBP fell to its lowest point of the month to trade at 0.7790 as the euro weakened to its lowest point on the last days of the month. Eurozone CPI inflation remained very low which has caused traders to believe that Mario Draghi will be forced to add additional stimulus at its meeting on Thursday. The 18-nation currency had its worst quarter since 2010 amid the ECB’s moves to swell its balance sheet and cut borrowing costs to spur growth.
The euro has tumbled almost 10 percent from a two-and-a-half year high reached in May as the ECB unveiled unprecedented stimulus, including purchases of asset-backed securities, to arrest a slide in inflation. A weaker currency may suit bank President Mario Draghi as it makes euro-area exports more competitive, while increasing consumer prices by making imports more expensive.
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 recent analysis and information in our weekly reports and we provide daily updates and outlooks.
Upcoming Economic Events that you should be monitoring:
Cur. Event
Wednesday, October 1
CNY Manufacturing PMI
EUR German Manufacturing PMI
GBP Manufacturing PMI
USD ADP Nonfarm Employment Change
USD ISM Manufacturing PMI
Thursday, October 2
GBP Construction PMI
EUR Interest Rate Decision
Friday, October 3
GBP Services PMI
USD Nonfarm Payrolls
USD Unemployment Rate
USD ISM Non-Manufacturing PMI
Monday, October 6
CAD Ivey PMI
Tuesday, October 7
GBP Manufacturing Production (MoM)
Thursday, October 9
GBP Interest Rate Decision
Friday, October 10
CAD Employment Change
Monday, October 13
CNY Trade Balance
Tuesday, October 14
EUR German ZEW Economic Sentiment
Wednesday, October 15
CNY CPI (YoY)
GBP Average Earnings Index +Bonus
Thursday, October 16
12:00 EUR CPI (YoY)
Friday, October 17
15:30 CAD Core CPI (MoM)
Government Bond Auction
Date Time Country
Oct 01 11:03 Sweden Bond auction
Oct 01 11:30 Germany Eur 5.0bn Aug 2024 Bund auction
Oct 01 11:30 UK Auctions 2% 2020 Gilt
Oct 02 10:30 Spain Bono/Obligacion auction
Oct 02 17:00 US Announces details of 3/10Y Note
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