Foreign Currency Exchange Rate Predictions For Pound Sterling, Euro, Dollar & Lira

August 30, 2013 - Written by David Woodsmith

STORY LINK Foreign Currency Exchange Rate Predictions For Pound Sterling, Euro, Dollar & Lira

The POUND STERLING enjoyed another strong session yesterday, registering gains against almost all of the other sixteen most-actively traded global currencies with the exception of the North American Dollars. The highlight of a quiet day for UK data releases came in the form of this month’s edition of the Lloyds Business Barometer which showed a pronounced uptick in confidence levels. The Pound is expected to trade on a NEUTRAL TO POSITIVE footing moving forward.

The EURO gave up ground against Sterling yesterday afternoon sending the GBP EUR exchange rate up to as high as 1.1713. The single currency suffered because of this month’s German Consumer Price Index figures which were published yesterday afternoon. The key inflation numbers showed at below the expected level, causing investors to price in a higher chance of further monetary easing from the European Central Bank. The outlook for the euro is NEUTRAL TO NEGATIVE.

The US DOLLAR performed strongly so far today as market participants shift their funds into safe haven assets thanks to fears regarding an escalation of the situation in Syria. The Greenback has recorded further gains due to the perception from investors that next month could be the month for a tapering of Quantitative Easing to begin in the States. The current GBP USD exchange rate stands at 1.5496 and the Buck is expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

The TURKISH LIRA has slumped in the markets over the past 6 weeks, sending the GBP TRY exchange rate up from the low 2.9000s to a multi-decade high of 3.1696 yesterday. The Turkish tender has leaked support during this period thanks to its long-standing role as a proxy currency for its less widely-traded North African and Middle Eastern neighbouring currencies. With the situation in Egypt remaining volatile and Western powers threatening to use force against Syria’s leadership, further losses cannot be ruled out for the Lira. The TRY is expected to trade on a NEGATIVE footing moving forward and the current GBP TRY exchange rate is 3.1442.

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