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

January 18, 2015 - Written by John Cameron

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

Currency News UK Presents Our Exchange Rate Predictions and Forecasts for the Pound Sterling, Euro, US Dollar and the Swiss Franc

Pound Exchange Rate Forecast

The POUND STERLING (currency:GBP) kept its head while all around them lost their during Friday’s session.

The lack of meaningful UK data on the day has helped the pound maintain its poise; however, Sterling’s current serenity may be tested by the minutes of the most recent Bank of England monetary policy committee announcement on Wednesday.

If the memos reveal that the nine-man committee has moved closer to unanimity on the topic of interest rate rises, then the UK unit could ship support.

The Pound is forecast to trade on a NEUTRAL footing in the near-term.

Swiss Franc Exchange Rate Forecast

The SWISS FRANC (currency:CHF) has, perhaps predictably, experienced a volatile session on the markets.

At its low point, the GBP CHF exchange rate changed hands at 1.2858, while at its peak the pair touched 1.3387.

The market is yet to decide exactly what fair value if for GBP CHF following the Swiss National Bank’s decision to scrap its minimum floor of 1.2000 on EUR CHF yesterday, but it appears likely that when the dust settles, fair value will stand at around the 1.3000 threshold.

The outlook for the Franc is therefore NEUTRAL and GBP CHF currently stands at 1.2970.

Euro Forecast

The EURO (currency:EUR) faces a make-or-break week in the markets.

Market participants almost fully expect the European Central Bank (ECB) to announce full-tilt Quantitative Easing, which would involve the bulk purchase of regional sovereign debt, next Thursday.

This set up means that any failure by the ECB to announce a further loosening of its monetary policy would bring renewed support for the single currency.

However, the spectre of Greece continues to loom large, so analysts forecast that the euro will continue to trade with a NEGATIVE bias.

Pound to euro exchange rate struck a fresh multi-year high of 1.3163 earlier today.

Dollar Rate Forecast

The US DOLLAR (currency:USD) has enjoyed a relatively encouraging day in the markets thanks to a slightly higher than anticipated showing from the latest US inflation numbers, out a few hours ago.

Analysts had expected the American price rise numbers for December to show at 0.7%, so the print of 0.8% provided a fillip for investors holding the Buck.

There’s not a great deal in the way of US tier one data next week, so the USD may outperform the majority of the other sixteen most actively traded global currencies in the short term.

The outlook for the Buck is therefore NEUTRAL TO POSITIVE and the GBP USD exchange rate stands at 1.5230.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts