Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, CHF

February 9, 2012 - Written by John Cameron

STORY LINK Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, CHF

POUND STERLING

The highlight of a packed day of UK data releases came at midday, when the Bank of England Monetary Policy Committee announced that it is set to extend its Asset Purchase scheme by £50bn. The market’s initial reaction was Sterling-positive, suggesting that investors are encouraged by the Bank’s decisive action. On the debit side, this morning’s UK Industrial Production figures were significantly worse than anticipated and this afternoon’s NIESR GDP growth estimate pointed to a double-dip recession for the UK. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5845

The Greenback has once again performed no more than steadily on the day, as UK and European stock indices made gains following the Bank of England’s announcement that it was set to inject further liquidity into financial markets. If share markets continue to push forward, then a renewed bout of selling pressure could be on the cards for the safe-haven Dollar, bringing the 1.6000 level into sight for GBP USD. NEAR-TERM OUTLOOK – NEUTRAL.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1919

The euro was buoyed by the news this afternoon that Greece’s coalition government has agreed to an austerity package, which will allow the debt-addled state to qualify for its next tranche of bail-out funding. The euro picked up on the news and had already been doing well following the ECB’s decision to maintain its key lending rate at 1.00% NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP CHF) is 1.4434

The Swiss Franc continues to test lower against the majority of the other sixteen most-actively traded global currencies, as investors remain concerned that the SNB may be about to raise its self-imposed EUR/CHF Floor of 1.2000. This morning’s Swiss SECO Consumer Confidence survey for January bettered expectations, but still came out in negative territory. NEAR-TERM OUTLOOK – NEGATIVE.


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