ALERT: Pound Euro, Dollar & Singapore Dollar 2015 Forecasts Updated Post FED

October 30, 2014 - Written by John Cameron

STORY LINK ALERT: Pound Euro, Dollar & Singapore Dollar 2015 Forecasts Updated Post FED

Read our leading analyst’s latest foreign currency exchange rate forecasts for the Pound Sterling (currency:GBP) versus the euro (currency:EUR), US Dollar (currency:USD) and the Singapore Dollar (currency:SGD).

The POUND STERLING (currency:GBP) struggled to record gains against any of the other sixteen most actively traded global currencies on the day yesterday.

The UK tender eased following the previous day’s comments from Bank of England Deputy Governor Jon Cunliffe suggesting that weak pay and the slow rate of domestic price rises might mean that British interest rates may have to remain at their current record low for an extended period of time.

Yesterday’s official figures revealing that the rate of domestic mortgage approvals had reached their lowest level since the middle part of last year’s added to the downside for Sterling, which is now predicted to trade with a NEUTRAL bias moving forward.

The Pound to Euro exchange rate is +0.24 pct higher with a conversion rate of 1 GBP equals 1.26988 EUR.
The Pound to Singapore Dollar exchange rate converts -0.01 per cent lower at 1 GBP is 2.04607 SGD.
The Pound to US Dollar conversion rate is +0.03 pct higher at 1.60074 GBP/USD.

Euro Boosted By Inflation Hopes

The EURO (currency:EUR) firmed against Sterling during yesterday’s session, sending the GBP EUR exchange rate down to an intraday nadir of 1.2637.

Comments from the European Central Bank policymaker Noyer earlier in the week suggesting that the rate of inflation in the euroland were set to remain low initially hindered the single currency.

However, his assertion that the rate of price rises might be as high as 0.6% (up from their current 0.3%), by the end of the year, helped the euro. The outlook for the single currency remains NEGATIVE.

Dollar Jumps On Federal Reserve Announcement

The US DOLLAR (currency:USD) enjoyed strong support yesterday following the latest US Federal Reserve monetary policy announcement.

As anticipated, the US central bank confirmed that it would be completing its Quantitative Easing programme this month.

The generally more positive tone of the Fed’s accompanying statement, with its observation of a marked improvement in the domestic labour market, added to the upside for the Greenback.

The development is likely to stoke market whispers regarding a near-term interest rate hike, meaning that the Buck is now forecast to trade on a POSITIVE footing. The GBP USD exchange rate stands at 1.6009.

Singapore Dollar Strengthens On Positive Report

The SINGAPORE DOLLAR (currency:SGD) enjoyed a fillip during yesterday’s session when an annual survey from the World Bank found that the island state is the best place in the world to conduct business.

The news saw the Sterling Singapore Dollar exchange rate dip to as low as 2.0463 during early trading and with many analysts suggesting that the generalised softening of Asian share markets during recent months is now set to end, the outlook for the Singie is NEUTRAL TO POSITIVE.

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