Pound to Euro & Pound to Dollar Exchange Rates Forecast Losses Predicted

April 8, 2014 - Written by Frank Davies

STORY LINK Pound to Euro & Pound to Dollar Exchange Rates Forecast Losses Predicted

Federal Reserve committeeman James Bullard delivered a set piece speech yesterday afternoon which has the potential to trigger pronounced movement for the US Dollar throughout today’s session.

The head of the St. Louis Federal Reserve Bank was speaking to an audience in Los Angeles and he delivered an emphatic verdict on last Friday’s mildly disappointing US Non Farm Payrolls numbers. Bullard’s view is that although the key gauge of US job creation was slightly on the soft side, it is important that the Fed continues with the Quantitative Easing taper at its current level of reduction of $10bn per month.

The man from Missouri stated that anything other than a ‘steady as she goes’ approach to cutting asset purchase would send out panic signals to market watchers and investors which would send waves of panic around the market.
The Pound US Dollar exchange rate continued to hover just above the 1.6600 threshold in the aftermath of the comments, but Bullard’s words have the potential to send the pair back down through the 1.6500 level later today.

Looking ahead, this afternoon’s latest UK GDP estimate from the NIESR stands out on the data list for today. The UK economy showed strong signs of improvement during the final three quarters of last year, but this amelioration appears to have shown signs of stuttering during the early months of this year. February’s quarterly rolling estimate from the NIESR showed at 0.8%. Analysts will be looking for an improvement from March’s figure. Anything less than this and the Pound is likely to give up ground against the other majors, sending the Sterling euro exchange rate tumbling back down into the 1.1900s once more GBP/EUR. The next risk event of note as far, as investors holding Sterling-denominated assets are concerned, comes tomorrow morning with UK trade figures for February.

Relevant Pound /Euro / US Dollar Exchange Rates (As of: 09:30 GMT 08/04/2014)

The Pound Sterling to Euro exchange rate is trading up +0.14% at 1.21021 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading up +0.29% at 1.66561 GBP/USD.
The Euro to Pound Sterling exchange rate is trading down -0.14% at 0.82630 EUR/GBP.
The Euro to US Dollar exchange rate is trading up +0.15% at 1.37630 EUR/USD.
The US Dollar to Euro exchange rate is trading down -0.15% at 0.72659 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading down -0.29% at 0.60038 USD/GBP.

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