EUR/GBP Fundamental Analysis June 26, 2012, Forecast

By FXEmpire.com

Analysis and Recommendations:

The EUR/GBP fell today, to 0.8037 as the euro dropped against most of the currencies. As it looks more and more certain that the BoE will offer an additional round of QE at their next meeting, the sterling weakens, but in the current markets the euro continues to drop lower and faster. With Spain, Greece and Italy floundering and Germany and France bickering, global leaders are pushing for more plans and action, but nothing is forth coming.

As demands for action weigh on EU leaders, markets begin to lose confidence that this week’s EU summit will yield anything more than promises and small steps. News flow has been limited, with almost no fundamental releases in the advanced economies and no surprises from the BIS annual meeting. In this environment the markets are shedding risk, with equities in negative territory, bond yields lower (except in the vulnerable Spain and Italy) and a stronger USD and outperforming on risk aversion

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.

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

Date	Time	Currency	Event	Previous
Jun 26	8:30	GBP	Public Sector Net Borrowing	-18.8B
	13:00	USD	S&P/CS Composite-20 HPI y/y	-2.6%
	14:00	USD	CB Consumer Confidence	64.9
Jun 27	All Day	EUR	German Prelim CPI m/m	-0.2%
	8:30	GBP	BBA Mortgage Approvals	32.4K
	10:00	GBP	CBI Realized Sales	21
	12:30	USD	Durable Goods Orders m/m	0.2%
	14:00	USD	Pending Home Sales m/m	-5.5%
	14:30	USD	Crude Oil Inventories
Jun 28	7:55	EUR	German Unemployment Change	0K
	8:30	GBP	Current Account	-8.5B
	8:30	GBP	BOE Credit Conditions Survey
	8:30	GBP	Final GDP q/q	-0.3%
	12:30	USD	Unemployment Claims
	12:30	USD	Final GDP q/q	1.9%
	23:01	GBP	GfK Consumer Confidence	-29
Jun 29	29th-4th	EUR	German Retail Sales m/m	0.6%
	6:45	EUR	French Consumer Spending m/m	0.6%
	7:00	CHF	KOF Economic Barometer	0.81
	8:00	EUR	M3 Money Supply y/y	2.5%
	9:00	EUR	CPI Flash Estimate y/y	2.4%
	12:30	USD	Core PCE Price Index m/m	0.1%
	12:30	USD	Personal Spending m/m	0.3%
	13:45	USD	Chicago PMI	52.7
	13:55	USD	Revised UoM Consumer Sentiment	74.1

Click here to read EUR/GBP Technical Analysis.

Originally posted here