Foreign Currency Exchange Rate Predictions For GBP EUR USD & CHF

Published: Monday, 17 June 2013 14:00 BST - Written by Frank Davies

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

A quiet start to the week for the POUND STERLING is likely to end tomorrow morning when the latest set of UK CPI inflation figures are published. Analysts are anticipating a slight rise in the annualised figure; if this comes to pass, then given the slightly firmer tone of recent British data releases thoughts of an extension to QE by the Bank of England may finally be put to bed. The Pound is expected to trade with a NEUTRAL TO POSITIVE bias in anticipation of this.

The EURO has started the week on a slightly weaker footing that it ended last week, sending the GBP EUR exchange rate up to 1.1788 earlier. This morning’s downward revision to April’s whole of eurozone trade balance figures hasn’t helped the single currency and concerns regarding tomorrow morning’s German ZEW Index have added to investors’ fears regarding the euro which is now expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term.

The US DOLLAR is leaking support ahead of Wednesday’s key Federal Reserve policy announcement. The shift out of Greenback-denominated assets has sent the GBP USD exchange rate to as high as 1.5731 earlier today, suggesting that investors feel that a near-term tapering of QE by the Fed is unlikely. The outlook for the Buck is NEUTRAL TO NEGATIVE.

The SWISS FRANC has given up ground against Sterling in early trading this week, sending the GBP CHF exchange rate up to 1.4523. A generally ‘risk on ‘ trading environment which has caused Europe’s bourses to trade up on the day has hurt the Franc, as had a lacklustre start to the week from the euro, which the Swiss currency remains inextricably linked to. The outlook for the Franc is NEUTRAL TO NEGATIVE.

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