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Forecasts: Pound Sterling & Yen Exchange Rate Losses Ahead, Euro Predicted to Rise

November 18, 2014 - Written by John Cameron

Our latest FX report forecasts gains for the Pound Sterling (currency:GBP) and Japanese Yen (currency:JPY) exchange rates and sees improvement in the Euro (currency:EUR) outlook going forwards.



latest sterling exchange rate forecastsThe EURO (currency:EUR) enjoyed an unexpected bout of strength against the Pound Sterling during this morning’s session.

The move followed the publication of the latest ZEW Sentiment Index in Germany, which revealed a jump in confidence amongst economic participant’s in the euroland’s premier economy. The result of 11.5 thrashed the 0.5 anticipated by analysts and marked a pronounced improvement from last month’s showing of -3.6.

The Pound to Euro exchange rate converts -0.7 per cent lower at 1 GBP is 1.24715 EUR.
The Pound to Japanese Yen exchange rate is +0.15 pct higher at 182.66736 GBP/JPY.
The Pound to Turkish Lira exchange rate is -0.49 pct lower with a conversion rate of 1 GBP equals 3.47223 TRY.
The Pound to US Dollar exchange rate converts -0.04 per cent lower at 1 GBP is 1.56315 USD.

Pound Exchange Rate Today: BoE Comments Hold Back GBP



The development, alongside the lowering of investors’ expectations regarding the timing of the next Bank of England (BoE) interest rate hike, helped to send the Pound euro exchange rate down to an intraday low of 1.2468 GBP EUR earlier on.

The next significant level heading lower for the pair comes at September’s pre-Scottish referendum nadir of 1.2398. With some analysts suggesting that the BoE may not be in a position to begin normalising interest rates until late 2015, or even into 2016, the downside pressure on Sterling is likely to continue into the medium term.
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If this brings consecutive closes below 1.2398, then there would appear to be little stopping the pair tracking further downwards.

Pound to Yen Exchange Rate Forecast: GBP/JPY Climbs On Dual Announcement



Elsewhere, the Japanese Yen shipped further support on the day following a dual revelation from Japan’s Prime Minister Shinzo Abe.

His announcement of a snap election and a postponement of a planned domestic sales tax increase saw investors scramble to shift their assets of the Yen.

The upshot propelled the Pound Yen exchange rate up to as high as 183.3300 a short time ago.

Soeren Hettler of DZ Bank explained a short time ago that, ‘we have good sentiment in Japan for the stock market because of the tax hike taking place later, and on the other hand you have the political uncertainty that is bad for the Yen.’ The future prospects of the Japanese tender appear weak.

Pound Dollar Forecast: GBP/USD Rate Hinges On Fed



Look out for tomorrow’s Federal Reserve minutes to provide the Pound Sterling US Dollar exchange rate (GBP/USD) with renewed direction.

Any hint that an increase in US interest rates will be forthcoming during the early part of next year would provide the Buck with renewed support, sending GBP USD lower once more.
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