Foreign Currency Forecast For GBP EUR And USD & GBP Exchange Rate Predictions

Published: Friday, 8 February 2013 14:00 BST - Written by Tim Boyer

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

The POUND STERLING has continued to perform well on the currency markets following yesterday’s move forward. BoE Governor-in-waiting Mark Carney’s failure to espouse a further loosening of UK monetary policy has helped and yesterday afternoon’s NIESR GDP data, which estimated that the British economy has now stopped contracting, added to positive sentiment regarding the Pound. The current oulook for Sterling is NEUTRAL.

The EURO has remained under pressure throughout today’s trading session, largely thanks to Mario Draghi’s gloomy words of yesterday. This morning’s weaker-than-anticipated German trade data has added to selling pressure on the single currency. The current GBP EUR exchange rate stands at 1.1771 and the euro is expected to trade with a NEUTRAL TO NEGATIVE bias in the short term.

The US DOLLAR has given up further ground against the Pound so far today, sending the GBP USD exchange rate up to its current level of 1.5788. Global stock markets have clawed back some of their losses of earlier in the week during today’s European session, heaping pressure on the safe-haven Greenback. With little in the way of significant US data releases for the remainder of the week, the Buck is expected to head into next week on a NEUTRAL TO NEGATIVE footing.

The SWISS FRANC has held up better against the Pound than most of the other major currencies so far today, partly thanks to this morning’s Swiss Retail Sales data for December, which revealed a healthy annualised increase in Swiss shop sales of 5.1% last month. The Franc was afforded another boost by the Retail Sales numbers when November’s number was upwardly revised to 3.0%. The current GBP CHF exchange rate is 1.4470 and it is anticipated that the Franc will trade with a NEUTRAL bias moving forward.

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