Exchange Rate Forecasts for the Pound Sterling, Euro, Dollar and Swiss Franc

December 14, 2014 - Written by John Cameron

STORY LINK Exchange Rate Forecasts for the Pound Sterling, Euro, Dollar and Swiss Franc

Currency News UK Brings You Our Latest British Pound, Euro, Swiss Franc and Euro Forecasts and Exchange Rate Predictions

The POUND STERLING (currency:GBP) endured a generally disappointing day in the markets on Friday.

The UK tender continues to be weighed down by analysts’ forecasts that the Bank of England may not be in a position to hike British interest rates for another twelve months, while this morning’s data which pointed to a sharp slump in activity levels in the UK construction sector have added to Sterling’s woes.

Tuesday’s domestic inflation figures will be vital to the UK unit’s near-term performance; in the meantime, the outlook for Sterling is NEUTRAL.

GBP Rates Today

The Pound to Australian Dollar exchange rate is 1 GBP equals 1.90591 AUD.
The Pound to Canadian Dollar exchange rate is 1 GBP equals 1.81990 CAD.
The Pound to Swiss Franc conversion rate is 1.51435 GBP/CHF.
The Pound to Euro rate is 1.26131 GBP/EUR.
The Pound to US Dollar exchange rate today is converting at 1.57178 GBP/USD.

Euro Exchange Rate Forecast: German QE Objections Support EUR

The EURO (currency:EUR) has clawed back a significant amount of its lost ground against Sterling during today’s session.

Support for the single currency has improved as investors price-in the high likelihood that Germany will maintain its ideological objection to regional sovereign debt purchases into the medium term.

Without the support of its leading economic superpower, a full-blown programme of Quantitative Easing is highly unlikely from the European Central Bank.

However, with a bout of deflation apparently just around the corner, the outlook for the single currency remains NEGATIVE.

Dollar Exchange Rate Forecast: USD Predicted to Gain on Policy Forecasts

Support for the US DOLLAR (currency:USD) eased during the 24hrs before market close.

The general impression amongst analysts is that the move is technical in nature, rather than fundamental, with speculators ‘taking profit’ on the Buck following its sharp move forward of recent months.

With the US Federal Reserve generally adjudged to be well ahead of the curve with regard its monetary policy, the Greenback is likely to remain well supported into next week.

Predictions are that the Buck will perform on a POSITIVE footing moving forward.

Swiss Franc Forecast to Climb on Safe Haven Role

The Swiss Franc (currency:CHF) outperformed nearly all of the other sixteen most actively traded global currencies on Friday.

London’s benchmark FTSE100 index shed over 2.0% of its total value on the day, while Paris’ Cac 40 and Frankfurt’s Dax lost even more ground as investors continued to actively express their concerns at this week’s data from Asia’s two major economies.

The safe-haven Franc has benefitted as a consequence.

Whilst shares edge lower, the outlook for the Swiss unit is NEUTRAL TO POSITIVE.

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