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Weekly Analysis and Recommendations
The EUR/GBP close the week at 0.8374 after opening at 0.8426 as the Great British Pound continued to gain all week, while the euro moved up and down but remained in a tight range. There was little top tier eurozone data this week and the ECB was fairly quiet leaving the currency to sway on global sentiment. On the other hand the UK pound continued to see positive economic data and was supported by Bank of England Governor Carney. The Euro meanwhile came under pressure after Euro zone finance ministers met in Lithuania to discuss further reforms to strengthen the region’s banking sector. The European Parliament approved legislation that would allow the European Central Bank to oversee banks in the Eurozone.
The Bank of England should use its powers to prevent house prices in the U.K. rising by more than 5% a year, Britain’s property surveyors said Friday, in a move that underscores growing concerns over the risk that a new housing bubble is building. The Royal Institution of Chartered Surveyors said a cap on the annual rate of growth in house prices would put a lid on homeowners’ expectations of future gains and discourage people from taking on debts they may struggle to repay.
Sterling rose to an eight-month high against a basket of currencies on Friday on the view that a strengthening British economy will mean interest rates rising earlier than the central bank has flagged. The pound’s trade-weighted index rose to 82.7, its highest since mid-January, as the UK currency stayed near multi-month highs against the dollar and the euro.
“Short-term momentum is still bullish and I wouldn’t be surprised to see a test of $1.60 before too
Adding to the picture of a stronger economy, second-tier data on Friday showed UK construction output rose by 2.2 percent in July from June, with signs of more expansion to come as new orders jumped in the second quarter.
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 September 9-13 actual v. forecast for Euro, GPB, the Franc, and USD
Chinese Fixed Asset Investment (YoY)
Chinese Industrial Production (YoY)
French Non-Farm Payrolls (QoQ)
Historical: From 2011 to Present
Highest: 0.9084 EUR on Jul 01, 2011
Average: 0.8351 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
Government Bond Auction
Date Time Country
Sep 16 09:00 Slovakia
Sep 16 09:10 Norway
Sep 17 08:30 Spain
Sep 17 09:30 Belgium
Sep 18 09:10 Sweden
Sep 18 09:30 Germany
Sep 18 09:30 Portugal
Sep 19 08:30 Spain
Sep 19 08:50 France
Sep 19 09:30 UK
Sep 19 09:50 France
Sep 19 15:00 US
Sep 19 17:00 US
Sep 20 15:30 Italy
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