EUR/GBP Weekly Fundamental Analysis, October 6-10 2014, Forecast

Weekly Analysis and Recommendations

The EUR/GBP eased by 10 points to trade at 0.7836 as both currencies weakened in unison to lackluster PMI data. The euro fell this week as ECB policy makers kept key interest rates unchanged at record lows, as predicted by all analysts surveyed by Bloomberg. Draghi failed to provide details on the size of a plan to buy private debt, after previously saying he would steer the balance sheet back toward levels seen at the start of 2012, signaling as much as 1 trillion euros ($1.3 trillion) in assets may be added. Sterling dropped 1.1 percent to 78 for the first time since Nov. 14, as a decline in Markit Economics’ Purchasing Managers’ Index of services added to signs U.K. growth is losing momentum.

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.

Historical: From 2011 to Present

Highest: 0.9084 EUR on Jul 01, 2011

Average: 0.8351 EUR over this period.

Lowest: 0.7758 EUR on July 22, 2012

Events You Should Be Monitoring This Week:

CAD                      Ivey PMI

NZD                      NZIER Business Confidence

JPY                        Monetary Policy Statement

AUD                      Cash Rate

AUD                      RBA Rate Statement

JPY                        BOJ Press Conference

GBP                       Manufacturing Production m/m

CAD                      Building Permits m/m

USD                      FOMC Meeting Minutes

AUD                      Employment Change

AUD                      Unemployment Rate

GBP                       Asset Purchase Facility

GBP                       Official Bank Rate

GBP                       MPC Rate Statement

USD                      Unemployment Claims

EUR                      ECB President Draghi Speaks

CAD                      Employment Change

CAD                      Unemployment Rate

Upcoming Government Bond Auctions

Date Time Country 

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