By FXEmpire.com
Analysis and Recommendations:
The EUR/GBP fell below the 0.7800 level today and is trading right on the mark. After dipping lower for the last few days, the euro was able to move up a few pips on here today. Investors are worried about the upcoming GDP report, which might sink the UK economy deep into recession.
Downward movement is the result of external concerns driving broader market sentiment in the absence of domestic data. Wednesday’s Q2 GDP release should shift the focus back to fundamentals, where the y/y pace of contraction is expected to fall from 0.2% to 0.3%. A weak release is likely to put further pressure on the ruling coalition, and a lack of political support for austerity will increase the potential for the UK to lose its AAA rating
After harsh statements from the IMF last week the BoE and the government might be forced to rethink some of their policies after Wednesday’ data release.
The euro continues to remain weak against most of its partners, falling to 11 year lows against the USD.
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 July 23, 2012 actual v. forecast
|
Date |
Time |
Currency |
Event |
Actual |
Forecast |
Previous |
|
Jul. 23 |
01:30 |
TWD |
Taiwanese Unemployment Rate |
4.24% |
4.30% |
4.25% |
|
02:30 |
AUD |
PPI (QoQ) |
0.5% |
0.3% |
-0.3% |
|
|
10:30 |
EUR |
German 12-Month Bubill Auction |
-0.054% |
0.019% |
||
|
13:30 |
USD |
Chicago Fed National Activity |
-0.15 |
-0.48 |
Upcoming Economic Events that affect the CHF, EUR, GBP and USD
|
Date |
Time |
Currency |
Event |
Previous |
|
Jul 24 |
7:00 |
EUR |
French Flash Manufacturing PMI |
45.2 |
|
7:00 |
EUR |
French Flash Services PMI |
47.9 |
|
|
7:30 |
EUR |
German Flash Manufacturing PMI |
45.0 |
|
|
7:30 |
EUR |
German Flash Services PMI |
49.9 |
|
|
8:00 |
EUR |
Flash Manufacturing PMI |
45.1 |
|
|
8:30 |
GBP |
BBA Mortgage Approvals |
30.2K |
|
|
9:00 |
EUR |
Flash Services PMI |
47.1 |
|
|
13:00 |
USD |
Flash Manufacturing PMI |
52.5 |
|
|
Jul 25 |
8:00 |
EUR |
German Ifo Business Climate |
105.3 |
|
8:30 |
GBP |
Prelim GDP q/q |
-0.3% |
|
|
10:00 |
GBP |
CBI Industrial Order Expectations |
-11 |
|
|
13:00 |
EUR |
Belgium NBB Business Climate |
-13.2 |
|
|
14:00 |
USD |
New Home Sales |
369K |
|
|
14:30 |
USD |
Crude Oil Inventories |
||
|
Jul 26 |
6:00 |
EUR |
GfK German Consumer Climate |
5.8 |
|
8:00 |
EUR |
M3 Money Supply y/y |
2.9% |
|
|
12:30 |
USD |
Core Durable Goods Orders m/m |
0.7% |
|
|
12:30 |
USD |
Unemployment Claims |
||
|
14:00 |
USD |
Pending Home Sales m/m |
5.9% |
|
|
Jul 27 |
27th-31st |
GBP |
Nationwide HPI m/m |
-0.6% |
|
All Day |
EUR |
German Prelim CPI m/m |
-0.1% |
|
|
7:00 |
CHF |
KOF Economic Barometer |
1.16 |
|
|
12:30 |
USD |
Advance GDP q/q |
1.9% |
|
|
13:55 |
USD |
Revised UoM Consumer Sentiment |
72.0 |
Government Bond Auctions
Date Time Country
Jul 24 08:30 Netherlands
Jul 24 08:30 Spain
Jul 24 15:30 Italy
Jul 24 17:00 US
Jul 25 09:30 Germany
Jul 25 15:30 Italy
Jul 25 17:00 US
Jul 26 00:30 Japan
Click here a current EUR/GBP Chart.
Originally posted here
