Daily Foreign Currency Exchange Rate Forecasts For USD, EUR, GBP and CHF

August 23, 2012 - Written by Tim Boyer

STORY LINK Daily Foreign Currency Exchange Rate Forecasts For USD, EUR, GBP and CHF

Last night’s Federal Reserve FOMC minutes dropped heavy hints that additional QE might be on the menu later in the year. Initially this caused investors to move against the US DOLLAR during last night’s Asian session. However, the Buck has pared these losses during today’s session, partly due to worse than anticipated US labour market data released this afternoon. The current GBP USD exchange rate sits at 1.5878.

This morning’s disappointing German PMI Services survey disappointed, however the EURO has still manager to make gains against Sterling on the day, taking the GBP EUR exchange rate down to 1.2624 by the European equities close. Press reports suggesting that German leader Angela Merkel and her French counterpart Francois Hollande are set to take a hardline on Greece’s request for leniency regarding its bailout package. The market likes these rumours and took the GBP EUR exchange rate down to 1.2622 late on.

The POUND STERLING has traded with a neutral bias during today’s session, as investors sit on their hands ahead of tomorrow morning’s latest GDP growth data. In recent times, initial UK growth estimates have been revised upwards on their second estimate, lending some hope to clients holding GBP-denominated assets. However, whatever the exact nature of tomorrow’s release, it is certain that it will reveal that Britain’s economy is failing.

The SWISS FRANC has made a mini-comeback against Sterling in recent months and the stabilisation process for the Franc continued today. Today’s news that Swiss exports are o the up once again helped the Franc and provided validation of the Swiss National Bank’s EUR / CHF peg, which remains at 1.2000. The outlook for the Swiss tender would appear to be slightly more positive and the GBP CHF exchange rate stands at 1.5156.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts