By FXEmpire.com

Analysis and Recommendations:

The EUR/GBP is trading at 0.8021 at this writing (3GMT), with the euro weakening after investors optimism waned and the realization of that the plans offered by the EU Summit Ministers may never take place market sentiment is once again losing its cheer.

In the UK a surprise increase in Manufacturing PMI gave the pound a bit of a push upwards today.

This pair is in the battle of the central banks this week, as the ECB is expected to reduce interest rates by 1/4 bps to .75 the lowest in its history, while the Bank of England is expected to hold rates but introduce additional monetary easing to stimulate growth both meetings are scheduled to take place on July 5th.

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 date for July 2, 2012 actual v. forecast

Date

Currency

Event

Actual

Forecast

Previous

July 2

JPY

Tankan Large Manufacturers Index

-1

-4

-4

CNY

Chinese HSBC Manufacturing PMI

48.20

48.10

CHF

Retail Sales (YoY)

6.2%

5.0%

0.2%

CHF

SVME PMI

48.1

45.0

45.4

EUR

French Manufacturing PMI

45.2

45.3

45.3

EUR

German Manufacturing PMI

45.0

44.7

44.7

EUR

Manufacturing PMI

45.1

44.8

44.8

GBP

Manufacturing PMI

48.6

46.7

45.9

EUR

Unemployment Rate

11.1%

11.1%

11.0%

USD

ISM Manufacturing Index

47.9

52.0

53.5

Upcoming Economic Events that affect the CHF, EUR, GBP and USD

Date

Time

Currency

Event

Forecast

Previous

Jul 3

3rd-6th

GBP

Halifax HPI m/m

-0.3%

0.5%

4:30am

GBP

Construction PMI

53.1

54.4

4:30am

GBP

Net Lending to Individuals m/m

1.1B

1.4B

10:00am

USD

Factory Orders m/m

0.1%

-0.6%

Jul 4

Jul 5

4:00am

EUR

Final Services PMI

46.8

46.8

4:30am

GBP

Services PMI

53.0

53.3

5:00am

EUR

Retail Sales m/m

0.2%

-1.0%

6:00am

EUR

German Factory Orders m/m

0.2%

-1.9%

7:00am

GBP

Official Bank Rate

0.50%

0.50%

7:45am

EUR

Minimum Bid Rate

0.75%

1.00%

8:15am

USD

ADP Non-Farm Employment Change

101K

133K

8:30am

USD

Unemployment Claims

385K

386K

10:00am

USD

ISM Non-Manufacturing PMI

53.1

53.7

11:00am

USD

Crude Oil Inventories

-0.1M

Jul 6

3:00am

CHF

Foreign Currency Reserves

303.8B

3:15am

CHF

CPI m/m

-0.3%

0.0%

4:30am

GBP

PPI Input m/m

-2.1%

-2.5%

6:00am

EUR

German Industrial Production m/m

0.3%

-2.2%

8:30am

USD

Non-Farm Employment Change

92K

69K

8:30am

USD

Unemployment Rate

8.2%

8.2%

Government Bond Auctions

Date Time Country

Jul 03 08:30 Holland

Jul 03 09:15 Austria

Jul 03 09:30 Belgium

Jul 03 09:30 UK

Jul 03 14:30 UK

Jul 04 09:30 UK

Jul 05 08:30 Spain

Jul 05 08:50 France

Jul 05 15:00 US

Click here for further EUR/GBP Forecast.

Originally posted here