Foreign Currency Exchange Rate Prediction For Euro Pound (EUR/GBP) & Forecast For USD NOK

February 18, 2014 - Written by John Cameron

STORY LINK Foreign Currency Exchange Rate Prediction For Euro Pound (EUR/GBP) & Forecast For USD NOK

The EURO started this week’s session in tame form, with GBP EUR slumping to as low as 1.2255 during yesterday’s session. The single currency is likely to remain in the ‘at risk’ category whilst European Central Bank policymembers suggest that a further loosening of monetary policy in the euroland is a live possibility. The euro is badly in need of a strong showing from this morning’s German ZEW survey of confidence – anything other than this and it is likely to continue to perform on a NEUTRAL TO NEGATIVE footing moving forward.


The POUND STERLING’s near-term trajectory against the other majors is dependent upon this morning’s UK inflation figures. Any showing of below 2.0% for the headline CPI measure of domestic price rises, signifying a dip below the government’s target, is bound to trigger selling pressure on the Pound. With tomorrow’s Bank of England minutes unlikely to prove market moving, Sterling is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The US DOLLAR slumped in the markets yesterday as institutional investors continued to prove reluctant to hold Greenback-denominated assets over fears that the Federal Reserve may opt to maintain Quantitative Easing at $75bn later this month. By the law of supply and demand, any such move would hold back the Buck, but the US tender has plenty of risk events to negotiate ahead of the next FOMC meeting. Thursday’s US inflation numbers are likely to suggest that American price rises are well under control, meaning that there is little onus on the Fed to further taper its QE scheme. For this reason, the forecast for the Dollar is neutral to negative.

The NORWEGIAN KRONE pushed ahead against the Pound yesterday, meaning that by the end of the European equities session the GBP NOK exchange rate had tumbled to 10.1470. A spike in the price of a barrel of crude over the past four weeks has assisted the Norwegian tender and if the US Federal Reserve opts to maintain its bond purchase programme at its current $75bn per month in two weeks’ time, the NOK is likely to enjoy further support. For this reason, the Krone is expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts