EUR/GBP Fundamental Forecast – September 19, 2016

The EUR/GBP gained 35 points as the pound tumbled harder than the euro as both currencies remained weak in today’s session. The pair is trading at 0.8528. Pound slumps as BOE hints at further easing

The pound slumped on Thursday after the Bank of England left the door open for a further expansion of its stimulus efforts.

The central bank left its benchmark interest rate unchanged (http://www.marketwatch.com/story/boe-stands-pat-on-rates- but-signals-a-cut-ahead-2016-09-15) at 0.25%, a record low. It also left unchanged the size of its quantitative easing program at GBP435 billion ($576 billion). Investors had widely expected the central bank to stay put.

Hoping to shield the British economy from the expected fallout from June’s vote to leave the European Union, the central bank launched a stimulus program over the summer that included plans to buy corporate bonds and offer ultra-cheap loans to banks.

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 September 19, 2016

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Government Bond Auctions

Date Time Country Auction

Sep 19 11:00 Belgium Holds OLO auction

Sep 20 11:30 UK Jul 2047 Gilt

Sep 21 10:30 Denmark Holds bond auction

Sep 21 11:03 Sweden Holds bond auction

Sep 21 11:30 Germany Eur 4bn 0% Oct 2021 Bobl

Sep 22 17:20 Italy Announces details of bond auction