By FXEmpire.com

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 ended the week right where it started, as so did many of the currency pairs. On the whole there wasn’t really much action and everything balanced at the end of the week. It was a week with little news and little eco data except in the US as summer vacations come to an end.

This pair just went along for the ride, ending the week at 0.7859

EUR/GBP

Date

Last

Open

High

Low

Change %

Aug 17, 2012

0.7859

0.7853

0.7877

0.7837

0.08%

Aug 16, 2012

0.7853

0.7838

0.7860

0.7813

0.19%

Aug 15, 2012

0.7838

0.7863

0.7879

0.7824

-0.32%

Aug 14, 2012

0.7863

0.7863

0.7885

0.7855

0.00%

Aug 13, 2012

0.7863

0.7836

0.7874

0.7828

0.34%

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 August 13-17, 2012 actual v. forecast for Euro, GPB, the Franc, and USD

Date

Time

Currency

Event

Actual

Forecast

Previous

Aug 14

8:30

GBP

CPI y/y

2.6%

2.3%

2.4%

9:00

EUR

German ZEW Economic Sentiment

-25.5

-19.4

-19.6

12:30

USD

Core Retail Sales m/m

0.8%

0.4%

-0.8%

12:30

USD

PPI m/m

0.3%

0.3%

0.1%

12:30

USD

Retail Sales m/m

0.8%

0.3%

-0.7%

Aug 15

8:30

GBP

Claimant Count Change

-5.9K

6.2K

1.0K

8:30

GBP

MPC Meeting Minutes

0-0-9

0-0-9

0-0-9

12:30

USD

Core CPI m/m

0.1%

0.2%

0.2%

Aug 16

8:30

GBP

Retail Sales m/m

0.3%

0.0%

0.8%

12:30

USD

Building Permits

0.81M

0.77M

0.76M

12:30

USD

Unemployment Claims

366K

365K

364K

14:00

USD

Philly Fed Manufacturing Index

-7.1

-4.7

-12.9

Aug 17

13:55

USD

Prelim UoM Consumer Sentiment

73.6

72.5

72.3

Historical: From 2010 to Present

Highest: 0.9150 EUR on March 01, 2010.

Average: 1.1548 EUR over this period.

Lowest: 0.7758 EUR on July 22, 2012

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

Date

Time

Currency

Event

Previous

Aug 21

8:30

GBP

Public Sector Net Borrowing

12.1B

10:00

GBP

CBI Industrial Order Expectations

-6

Aug 22

14:00

USD

Existing Home Sales

4.37M

14:30

USD

Crude Oil Inventories

-3.7M

18:00

USD

FOMC Meeting Minutes

Aug 23

6:00

CHF

Trade Balance

2.25B

7:00

EUR

French Flash Manufacturing PMI

43.4

7:00

EUR

French Flash Services PMI

50.0

7:30

EUR

German Flash Manufacturing PMI

43.0

7:30

EUR

German Flash Services PMI

50.3

8:00

EUR

Flash Manufacturing PMI

44.0

8:00

EUR

Flash Services PMI

47.9

8:30

GBP

BBA Mortgage Approvals

26.3K

10:00

GBP

CBI Realized Sales

11

12:30

USD

Unemployment Claims

366K

13:00

USD

Flash Manufacturing PMI

51.4

14:00

USD

New Home Sales

350K

Aug 24

8:30

GBP

Revised GDP q/q

-0.7%

8:30

GBP

Prelim Business Investment q/q

1.9%

12:30

USD

Core Durable Goods Orders m/m

-1.1%

12:30

USD

Durable Goods Orders m/m

1.6%

13:00

EUR

Belgium NBB Business Climate

-11.3

Click here for further EUR/GBP Forecast.

Originally posted here