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Pound Sterling Forecast - Gains Predicted for GBP vs EUR, USD & AUD On Bank Of England Governor?s Speech

September 24, 2014 - Written by John Cameron

The general consensus exchange rates forecast amongst analysts remains that the euro (EUR) will incur further losses against the other major tenders including the Pound Sterling (GBP) and US Dollar (USD). Economists predict that tomorrow afternoon’s speech from Bank of England Governor Mark Carney may be a defining one for the Pound Sterling in the near term.

Another day, another dismal data set from the eurozone; this morning’s German economic statistics revealed that business confidence in the euroland’s premier economy had fallen for the fifth month on the trot.

The dire numbers added to the impression created on Tuesday by the latest PMI survey which revealed that activity levels in the German manufacturing sector stood at their lowest level for fifteen months, that all is not well with the euroland’s powerhouse economy.

The news saw the Pound Sterling euro exchange rate climb to as high as 1.2800 GBP EUR during the afternoon session in Europe.

Significantly, this represented a failure to eclipse the post-Scottish referendum peak of 1.2804 which the pair touched off during the early hours of last Friday morning.

Consecutive closes above this significant level of resistance will now be required in order to confirm the GBP EUR’s extant uptrend.

Sterling Dollar Exchange Rate: Edges lower on American data

Elsewhere, the Pound US Dollar exchange rate GBP/USD tracked lower off its intraday high this afternoon following the publication of a mixed bag of American housing sector data.

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The latest New Home Sale numbers pleased Dollar-holders, printing at 504,000 versus an anticipated 430,000; however, the positive effect of this result was mitigated by a below par set of weekly Mortgage Approval figures.

The Pound Sterling US Dollar exchange rate dipped to as low as 1.6323 GBP USD as a consequence and analysts forecast that there could be renewed gains to come for the pair tomorrow afternoon if, as expected, August’s Durable Goods Orders data shows a month-on-month drop of 18.0%.

Tomorrow’s highlight, as far as Sterling-watchers are concerned, comes in the form of a set piece speech from Bank of England Governor Mark Carney.

Any hint that a UK interest rate hike may be close at hand would be likely to send the Pound higher against all of the other sixteen most-actively traded global currencies.
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