Foreign Currency Forecast For EUR GBP Exchange Rate & USD, INR Predictions

Published: Tuesday, 29 January 2013 16:00 BST - Written by John Cameron

STORY LINK Foreign Currency Forecast For EUR GBP Exchange Rate & USD, INR Predictions

The EURO suffered a pronounced wobble earlier today when France’s Labour Minister described his nation as ‘totally bankrupted’. French Finance Minister Pierre Moscovici tried to cool the situation by describing his state as ‘totally solvent’, but some reputational damage had already been done. The Pound Euro exchange rate (Currency : GBP EUR) stands at 1.1684 and the single currency is expected to trade on a NEUTRAL footing moving forward.

The POUND STERLING has stemmed its losses of earlier this week during today’s session. The slight gains by the Pound can be explained by the oft-observed ‘dead cat bounce’ effect, as the outlook for the UK tender remains NEGATIVE. The fact that Sterling has lost a significant amount of ground in a short space of time appears to have triggered some ‘value hunting’ from speculators, but the move could prove to be ephemeral.

The US DOLLAR has lost ground against the Pound on the day, taking the GBP USD exchange rate (currency : GBP USD) up to 1.5752 earlier this afternoon. However, a significantly weaker-than-anticipated US Consumer Confidence Survey this afternoon could cause a flight to quality which would favour the safe-haven Greenback. The Buck is expected to trade with a NEUTRAL TO POSITIVE bias in the near-term.

The INDIAN RUPEE has made gains against most of the other sixteen most-actively traded global currencies over the past seven days, in spite of a cut in domestic interest rates and an easing of the cash reserve ratio placed on Indian retail banks. The moves have been seen as a positive step in getting India’s economy performing at close to capacity once more, so the short term outlook for the Rupee is NEUTRAL TO POSITIVE. The current GBP INR exchange rate (currency : GBP INR) stands at 84.5495.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts