Pound Euro Exchange Rate (GBP EUR) Prediction And CHF USD Forecasts

Modified: Thursday, 28 February 2013 13:46 BST - Written by Toni Johnson

STORY LINK Pound Euro Exchange Rate (GBP EUR) Prediction And CHF USD Forecasts

The SWISS FRANC registered a better than anticipated set of domestic Q4 GDP growth data earlier today. The numbers showed that the Swiss economy unexpectedly expanded by 0.2% in the final three months of 2012, suggesting that the Swiss National Bank’s Franc-weakening policy is having the desired effect. However, the GBP CHF exchange rate has made gains on the day and currently trades at 1.4143, as the Franc suffers thanks to selling pressure on the euro, to which it remains coupled. The outlook for the franc is NEUTRAL TO POSITIVE.

This morning’s annualised core eurozone CPI inflation data showed at a lower level than had been expected at 1.3%. The news caused investors to price-in an increased percentage chance of a near-term interest rate cut in the region, heaping pressure on the EURO. The single currency had already been under pressure thanks to yesterday’s Italian bond auction, which saw the troubled Mediterranean state pay inflated rates of interest on its gilts. The current GBP EUR exchange rate stands at 1.1590 and the euro is expected to trade on a NEUTRAL footing moving forward.

The POUND STERLING has made gains against nearly all of the other sixteen most-actively traded global currencies, with the exception of the high-yielding Australian and New Zealand Dollars. The move was partly technical in nature, suggesting that Sterling had been oversold earlier in the week following last Friday’s UK sovereign debt downgrade. Investors appear to be of the opinion that all of the bad news may now be out in the open for the UK, meaning that the Pound trades with a NEUTRAL bias as we head towards the end of the week.

The US DOLLAR started the day with positive intent, losing only a little ground to Sterling this morning. A generally positive performance for global shares has stopped the safe-haven Greenback from pushing forward since lunch, and a downward revision to the annualised Q4 US GDP data, announced a short time ago, has triggered renewed selling pressure on the ‘Buck’. The current GBP USD exchange rate sits at 1.5199 and the Dollar is expected to trade on a NEUTRAL TO NEGATIVE footing for the remainder of the week.

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