Exchange Rate Predictions: Pound Sterling, Euro. US Dollar and Swiss Franc

December 23, 2014 - Written by John Cameron

STORY LINK Exchange Rate Predictions: Pound Sterling, Euro. US Dollar and Swiss Franc

Currency News UK Presents Our Latest Pound Sterling, Dollar, Euro and Swiss Franc Exchange Rate Forecasts for 2014 to 2015

Pound Sterling Gains by Default

The POUND STERLING (currency:GBP) had a day of two halves yesterday; the early part of the European session saw the Pound leak support against the other major global tenders.

Continuing concerns regarding a slowing of the rate of UK price rises was partly to blame.

However, the Pound gained support as the session progressed as other currencies lost ground.

Poor data from the US and elsewhere meant that Sterling was the ‘least bad’ option for many market participants.

The outlook for the UK unit is now NEUTRAL TO POSITIVE.

Euro Helped by Consumer Confidence Data

The EURO (currency:EUR) benefitted from a rare piece of relatively strong data during yesterday’s morning session.

The whole of eurozone Consumer Confidence figure is always closely-monitored and this month’s edition was expected to show at -11.0.

The marginally better than anticipated showing of -10.9 therefore helped the single currency and there could be more downside to come for the euro if this afternoon’s Michigan Confidence survey in the US helps the EUR USD exchange rate track lower.

Such a result would trigger attendant losses for the single currency against Sterling; in the meantime, analysts forecast a NEGATIVE performance for the euro. The GBP EUR exchange rate sits at 1.2743.

Housing Figures Hurt US Dollar

A poor showing from yesterday afternoon’s domestic housing data suppressed support for the US DOLLAR (currency:USD) late on.

The Existing Home Sales data revealed a month-on-month drop of over 6% from November’s counterpart figure, suggesting that analysts who spotted the green shoots of recovery in America’s broken property market may have been mistaken.

However, the Buck is still likely to hoover up support during the thin trading over the next week thanks to investors’ expectations that the Federal Reserve will be hiking interest rates during the first half of 2015.

The outlook for the Greenback remains NEUTRAL TO POSITIVE and GBP USD stands at 1.5620.

Swiss Franc Enjoys Safe Haven Support

The SWISS FRANC (currency:CHF) has firmed against Sterling during the past 24hrs in spite of last week’s action to trim interest rates into negative territory by the Swiss National Bank.

The Franc has proved itself to be resilient to the move thanks to a continued influx of safe haven funds from investors looking to avoid the fall-out of Russia’s continuing currency crisis.

If anything, Switzerland’s low yield has made it more attractive to investors seeking a safe harbour from the potential storm on the Eastern verge of Europe.

The outlook for the Franc is NEUTRAL TO POSITIVE and GBP CHF stands at 1.5328.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts