Weekly Exchange Rate Forecasts for British Pound, Euro and the Dollar

February 23, 2015 - Written by John Cameron

STORY LINK Weekly Exchange Rate Forecasts for British Pound, Euro and the Dollar

Latest Forecasts for the Pound Sterling to Euro and US Dollar

Last week brought significant moments for geo-political risk – this week’s session promises the release of important fundamental data sets which are likely to alter the relative value of several major global currencies.

Our leading analyst take a look at how the publication of these statistics is likely to affect price action for the Pound Sterling against the other major global tenders.

Today's Exchange Rates (23/02/2015 9PM GMT)

The Pound to Australian Dollar conversion rate is +0.99 pct higher at 1.98090 GBP/AUD.
The Pound to Canadian Dollar exchange rate converts +0.77 per cent higher at 1 GBP is 1.94367 CAD.
The Pound to Swiss Franc exchange rate today is converting +1.47 per cent higher at 1.46882 GBP/CHF.
The Pound to Euro exchange rate is +0.87 pct higher with a conversion rate of 1 GBP equals 1.36388 EUR.
The Pound to US Dollar exchange rate today is converting +0.43 per cent higher at 1.54536 GBP/USD.

Euro Exchange Rate Levels Depend on German Jobs Data

An uneasy period of horse-trading between Athens and its creditors lies in store following last Friday’s announcement that the eurogroup of Finance Ministers had agreed to extend Greece’s bailout by four months.

The deal should be rubber stamped tomorrow, allowing market participants to focus on the release of some key statistics from the euro area.

Any set of German labour market numbers are always closely-monitored and Thursday’s will be no exception.

Last week’s much stronger than anticipated German ZEW Sentiment Index suggests that things are picking up after a pronounced lull in the Teutonic state; however, analysts forecast that this week’s jobs figures may not serve to re-enforce this impression.

The February data is expected to reveal that the overall level of German unemployment remained steady at 6.5%, while it is anticipated that the net job creation number will show a slight deterioration from January’s counterpart figure to show at -10,000.

UK Q4 GDP Data on Tap

Meanwhile, Thursday also brings the release of provisional Q4 Gross Domestic Product numbers from the UK. The Q3 version of the same data showed at an annualised 2.7% - anything less than this and the Pound Sterling is likely to give up ground against the other major global currencies.

Dollar-Watchers Await 4 Key Data Sets

The heaviest data schedule of any of the leading world economies this week comes from the USA.

Tomorrow afternoon’s US Consumer Confidence data will go a long way to determining overall risk sentiment in the markets for the week. Thursday afternoon brings the latest US Consumer Price Index inflation figures, along with last month’s Durable Goods Orders data.

Commentators expect the all-important inflation numbers to show that the world’s premier economy has entered deflation – such a result could hold back the Buck, potentially seeing the GBP USD exchange rate break back above the 1.5500 threshold.

Finally, Friday’s session brings the publication of Q4 GDP data from the US. A tame showing would have a similar effect to a low American CPI result.

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