EUR/GBP Weekly Fundamental Analysis September 24-28, 2012 Forecast

Introduction: The cross tends to move in ranges, with relatively clear barriers. The narrower ranges made it somewhat harder, but it seems to return to wider ranges. The GBP is does not seem to move in response to the EUR as directly currently. The UK austerity program vs. The EU debt crisis seems to have them moving in opposing distances. They are developing new trading personalities and there is a good deal of profit to be made trading this pair. They can be volatile.

• The interest rate differential between the European Bank(ECB) and the Bank of England(BoE)
• European and UK economic data
• Growth differentials between the Euro zone and UK

Weekly Analysis and Recommendations

The EUR/GBP fell below the 0.80 price on Friday to close at 0.7998 as the EUR/GBP has maintained its 35 pip range into the US session which has no significant economic data scheduled. Reports of a Spain/EU deal to implement internal fiscal and economic reforms in exchange for a bailout package caused some market movement during the European session.

The euro fell to a 9-day low versus the sterling after a European Commission spokesman said Spain’s government and the EU are in close contact over a package of reforms but denied that the new measures will serve as the basis for an official aid request from the EFSF/ESM. 

Greece and the troika could not reach terms for the continued funding of the bailout as the representatives left Greece. New says that there will be no final agreement at the Oct EU summit and that final talks will be delayed until after the US elections.
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.

Major Economic Events for the week of September 17-21, 2012 actual v. forecast for Euro, GPB, the Franc, and USD

 

Economic Highlights of the coming week that affect the Euro, GBP, CHF and the USD

Government Bond Auction

Date Time Country 

Sep 24 09:10 Norway 

Sep 24 09:30 Germany 

Sep 24 10:00 Belgium 

Sep 24 15:30 Italy  

Sep 25 08:30 Holland 

Sep 25 08:30 Spain 

Sep 25 09:10 Italy  

Sep 25 14:30 UK 

Sep 25 17:00 US 

Sep 26 09:10 Italy  

Sep 26 09:10 Sweden 

Sep 26 09:00 Germany 

Sep 26 14:30 Sweden 

Sep 26 17:00 US 

Sep 27 00:30 Japan 

Sep 27 09:10 Italy  

Sep 27 17:00 US