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Pound to Euro Rate Forecast: Russia?s Oil Woes Predicted to Send GBP/EUR Higher Today

November 24, 2014 - Written by John Cameron

Currency News UK presents our Pound Sterling to Euro (GBP/EUR) Exchange Rate Forecast.



cad exchange ratesThe world’s stock markets have held relatively steady so far today in spite of some worrying news from Russia.

The Pound to Euro exchange rate is -0.17 pct lower with a conversion rate of 1 GBP equals 1.26239 EUR.
The US Dollar to Euro exchange rate today is converting -0.53 per cent lower at 0.80397 USD/EUR.
The Swiss Franc to Euro conversion rate is -0.03 pct lower at 0.83149 CHF/EUR.
The Canadian Dollar to Euro exchange rate converts -1.03 per cent lower at 1 CAD is 0.71223 EUR.

Global Stock Markets Hang on to Gains



The Asian session brought pronounced gains for Hong Kong’s benchmark Hang Seng index, while Tokyo’s Nikkei 225 also traded into positive territory. By the middle part of London’s trading day, the FTSE 100 index was marginally in the black. However, the headline UK equity index dropped back somewhat before the closing bell to end the day slightly in the red, but in truth it could have been a lot worse.

Russian Economy Hit Hard



If you believe comments from Russia’s Finance Minister Anton Siluanov earlier today, then Moscow has lost a cumulative total of $140bn through a combination of movement in the wholesale oil price market and sanctions enforced by Western nations during recent months. The majority of these paper losses have been incurred due to the recent plunge in the price of a barrel of crude which has seen the value of black gold tumble to its lowest level for some four years. The former Soviet state continues to be a significant producer of oil and gas, so the move has seriously affected the nation’s export earnings. With leading oil state Saudi Arabia seemingly unwilling to cut its production levels in order to support the price of a barrel of crude, there appears to be potential for further Russian losses to come.
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Russian Output Cut to Send GBP EUR Exchange Rate Higher



Oil analysts agree that Russia may react to the prevailing downtrend in oil prices by cutting its production levels by as much as 300,000 barrels per day in an effort to send the market Northwards once more. Such a move would be likely to hit Western Europe particularly hard, with Germany feeling the squeeze more than most. Analysts forecast that if Moscow does go down the route of restriction, then expect the euro (currency:EUR) to incur renewed losses against the Pound Sterling (currency:GBP).

Pound to euro Exchange Rate Forecast: Putin Warns the World



Such a move is predicted to send the GBP EUR exchange rate up through the 1.3000 threshold sooner rather than later.

Russian leader Vladimir Putin backed up this theory earlier today, when he observed that, ‘the modern world is interdependent. It's far from guaranteed that sanctions, the steep fall in oil prices and the loss of value of the national currency will lead to negative results or catastrophic consequences only for us.’
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