Exchange Rates Today - Latest Pound Sterling, Euro and Dollar Forecasts, Conversions & GBP EUR USD Outlook

September 14, 2014 - Written by Tim Boyer

STORY LINK Exchange Rates Today - Latest Pound Sterling, Euro and Dollar Forecasts, Conversions & GBP EUR USD Outlook

Currency News UK - Latest pound sterling, euro and us dollar exchange rate forecasts and currency conversions for GBP EUR and USD.

The US Dollar (USD) soared to a 10-month high against the Pound on Monday as investors ditched the UK currency after a poll showed that the Yes to Scottish Independence campaign had taken the lead over the pro- Unionist No campaign. The news stunned investors who quickly embarked on a bout of selling of the Pound.

Uncertainty over what currency choices an independent Scotland would have available also pressured the Pound lower. Politicians in Westminster warned that a formal currency union would be impossible.

On Tuesday, the US Dollar held onto gains against most of its major peers as hawkish language from the Federal Reserve Bank of San Francisco offered support. Investors raised their bets that the Central Bank will choose to raise interest rates earlier than previously expected.

The Pound meanwhile remained under heavy pressure against its major peers due to the concerns over the upcoming Scottish Referendum. In an attempt to win over support for staying in the UK the leaders of the Labour, Conservative and Liberal Democrats headed north of Hadrian’s Wall in order to plead their case for the union, it remains to be seen whether their presence was a help or a hindrance. Further losses for the currency were held in check however after the release of positive industrial production data and comments by Bank of England Governor Mark Carney.

Midweek, the US ‘Greenback’ gave up some ground against a rallying Pound following the release of a poll which showed that support for keeping the UK together had retaken the lead. However, against other major peers the ‘Greenback’ extended its gains as investors continued to raise their bets that the Federal Reserve will choose to raise interest rates sooner than previously anticipated.

The Pound managed to rally against its major peers overnight after a new opinion poll on the upcoming Scottish Independence vote showed that support for the No campaign had once again taken the lead with 53% of the vote. The poll came after a number of recent polls indicated that support for Scottish pro-independence voters had increased ahead of the September 18 referendum. The news eased some of the concerns that Scotland could leave the UK.

As the week came to a close the US Dollar was on course to make its biggest weekly gain in 10 months against most of its major peers as economists increased their bets that the sessions Retail Sales data release would add to the case for the Federal Reserve to raise interest rates. Expectations that the Fed will choose to end its monthly bond-buying programme in October has seen the ‘Greenback’ surge against the majority of its major peers.

The Pound meanwhile was able to hold onto Thursdays gains after another opinion poll showed the Pro-UK No campaign was in the lead ahead of next week’s Scottish Referendum. Comments made by Royal Bank of Scotland that it would move operations into England in the event of a Yes vote were also deemed as a positive as traders believed that voters would be swayed to vote in favour of staying a part of the UK. Market concerns over a possible breakup of the 300-year old union eased as a result.

Looking to next week, we can expect the USD/GBP exchange rate to remain volatile as the Scottish referendum draws closer and as the US Federal Reserve is due to hold its latest policy meeting Wednesday.

Euro to Pound (EUR/GBP) Exchange Rate Weekly Roundup/ Forecast

At the start of the week, the Euro managed to recover all of the ground it lost in the preceding week against the Pound as fears that Scotland will win Independence weighed significantly upon the UK currency. Against the US Dollar and other peers, however the single currency remained under sustained pressure after last week’s surprise decision by the European Central Bank to cut interest rates to a new record low.

The Pound meanwhile experienced heavy losses against all of its major peers over the weekend after a poll revealed that the Yes to Scottish Independence campaign took the lead over the pro- Unionist No campaign

On Tuesday, the Euro remained at a 14-month low against the US Dollar as concerns over the strength of the Eurozone economy continued to weigh heavily.

The Pound also remained under heavy selling pressure against its major peers due to the concerns over the upcoming Scottish Referendum. Further losses for the UK currency were held in check however after the release of positive industrial production data and comments by Bank of England Governor Mark Carney who outlined that a currency union with an independent Scotland would not be compatible with sovereignty.

Midweek, the Euro continued with its downward moves against the US Dollar and retreated against the Pound. It did however manage to make gains against the Swiss Franc after news broke that the Swiss National Bank was considering introducing negative interest rates in an attempt to defend the CHF/EUR cap. Inflation data out of Germany showed that on a month on month basis the nation’s inflation rate fell from 0.3% to 0%, heightening concerns that deflation is coming closer to occurring in the Eurozone.

The Pound managed to rally against its major peers and regained lost ground against the Euro after a new opinion poll on the upcoming Scottish Independence vote showed that support for the No campaign had once again taken the lead with 53% of the vote. The news eased some of the concerns that Scotland could leave the UK but the currency is likely to remain under pressure right up until the vote’s outcome is known.

As the week ended, the Euro was little changed against most of its major peers. Even the release of stronger than forecast industrial production data was unable to send the single currency higher.

Sterling also saw little change on Friday and was holding onto the gains of the previous session after another opinion poll showed the Pro-UK No campaign in the lead ahead of next week’s Scottish Referendum.

Looking ahead to next week, we can expect the Pound to remain volatile as the Scottish referendum vote draws closer.

Some economists are warning that if Scotland does vote in favour of leaving the UK the Pound could tumble by 10%. The GBP/EUR exchange rate is likely to remain mixed right up until the September 18 vote.

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