2015 Exchange rate Forecasts for the British Pound, Euro and the US Dollar

December 24, 2014 - Written by John Cameron

STORY LINK 2015 Exchange rate Forecasts for the British Pound, Euro and the US Dollar

Currency News UK Presents Our Latest Currency Forecasts for the Pound Sterling (GBP), Euro (EUR) and US Dollar (USD) Exchange Rates

With data released on an hourly basis throughout every working day of the year, (and some non-working days), it is easy to get caught up in short term noise and to lose sight of the longer term picture in the markets.

Read the latest long term forecasts for leading currency pairs GBP EUR and GBP USD below.

Pound to Dollar Exchange Rate Forecast

The Pound Sterling to US Dollar exchange rate has plunged to its lowest level since the end of August 2013 during afternoon trading today.

The shift lower for the pair has been driven by dual Gross Domestic Product data releases either side of the Atlantic.

The UK led the way at 0930hrs GMT with the publication of a finalised version of Britain’s Q3 growth figures.

Analysts had been predicting that the closely-watched number would confirm initial estimates that the domestic economy had expanded at a relatively healthy 3.0% during the twelve months to the end of October, so the pronounced downward revision to an annualised 2.6% came as a pronounced shock for investors holding Sterling.

GBP/USD Plunges Even Lower on US GDP

Meanwhile, it was the opposite situation on the other side of the Pond, with the US Commerce Department upwardly revising its counterpart US Q3 GDP figure to an annualised 5.0%, representing the highest rate of American growth for over a decade.

GBP USD slid down into the 1.5400s for the first time in 16 months shortly after the New York opening bell thanks to the dual data sets. It appears unlikely that the break lower for the pair has run its course just yet – the next significant level of support to the downside comes at July 2013’s 1.4814.

Following this, the next downside target comes at 1.4230 and GBP USD’s ultimate destination could be January 2009’s 1.3498.

Pound to Euro Exchange Rate Forecast

The Pound has fared rather better against the euro (currency:EUR) than the Dollar during recent months. September saw the GBP EUR exchange rate touch its highest level since July 2012 at 1.2876.

A break up through 1.2894 would have marked a fresh 74-month high for the pair, meaning that 1.2876 now marks a key level of resistance moving higher for GBP EUR.

Much hangs on the near term policy choices made by the European Central Bank.

With Saudi Arabia’s oil minister Ali al-Naimi stating earlier today that the twelve OPEC nations will not cut the supply of crude oil, even if this precipitates a downward shift to $20 per barrel for the price of ‘Black Gold’, a bout of euroland deflation looks almost nailed-on for the early part of next year.

The European Central Bank appears highly likely to respond with sovereign debt purchases, meaning that a fresh 6+ year high is forecast for GBP before the end of Q2 2015.

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