EUR/GBP Fundamental Analysis August 27, 2014 Forecast

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Updated: Aug 24, 2015, 14:00 GMT+00:00

Analysis and Recommendations: The EUR/GBP gained 5 points after BBA mortgages missed expectations to dip against the euro. The pair is trading at 0.7963.

EUR/GBP Fundamental Analysis August 27, 2014 Forecast

Analysis and Recommendations:

The EUR/GBP gained 5 points after BBA mortgages missed expectations to dip against the euro. The pair is trading at 0.7963. Some uncertainty about the outcome of the Scottish referendum, for which the gap between the “Yes” and “No” camp has narrowed, has pegged the pound back against the euro. But analysts said this weakness was likely to be temporary.

In Monday’s TV debate, Salmond relentlessly talked over Alistair Darling, the leader of the anti-independence movement, arguing Scotland would be wealthier, freer and better governed if it became independent.

“Despite Alex Salmond winning the second …debate…, we expect euro/sterling to stay soft this week,” said Chris Turner, head of currency strategy at ING. “The euro zone inflation and the response from the ECB (European Central Bank) should dominate and send euro/sterling down to 79 pence.”

The inflation data is due on Friday. Analysts polled by Reuters expect annual inflation to have slowed to 0.3 percent in August from 0.4 percent in July, falling even further below the ECB’s target of just under 2.0 percent.

Late on Friday, in stronger language than he has used in the past, ECB President Mario Draghi said the central bank was prepared to respond with all its “available” tools should inflation drop further.

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 up to the data analysis and information in our weekly reports.

Economic Data August 26, 2014 actual v. forecast

Cur.	Event	Actual	Forecast	Previous
NZD	Trade Balance (MoM)	-692M	-475M	247M
NZD	Trade Balance (YoY)	1,290M	1,490M	1,200M
GBP	BBA Mortgage Approvals		44.2K	43.3K
USD	Core Durable Goods Orders		0.5%	1.9%
USD	Durable Goods Orders (MoM)		7.5%	1.7%
USD	S&P/CS HPI Composite – 20		8.4%	9.3%
USD	CB Consumer Confidence		89.0	90.9