2015 Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), Swiss Franc (CHF) and the US Dollar (USD)

February 24, 2015 - Written by John Cameron

STORY LINK 2015 Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), Swiss Franc (CHF) and the US Dollar (USD)

Greek Exit Forecast to Harm Euro Exchange Rate

The EURO (currency:EUR) had a major wobble late last night when Greece’s policymakers announced that they would not be submitting the list of economic reforms which will accompany their nation’s bailout extension.

The increased potential of a Grexit from the eurozone weighed heavily on the single currency, eclipsing the positive effect of recent encouraging data from Germany.

The euro forecast remains fervently NEGATIVE.

Sterling Stays Strong

The POUND STERLING (currency:GBP) recorded gains against most of the other major global currencies during the first full day’s trading of the week.

No news was good news, on the data front at least, for the UK unit; meanwhile, with at least two of the Bank of England’s monetary policy committee hinting that a domestic interest rate hike may be required before the end of the year, analysts forecast that Sterling will perform on a NEUTRAL TO POSITIVE footing moving forward.

US Dollar Exchange Rate Falters

Support for the US DOLLAR (currency:USD) remained extremely flaky on the day yesterday as market participants fretted over the potential disappointment in this week’s heavy American data schedule.

This afternoon’s US Consumer Confidence survey is a potential banana skin, but the main event of the week for Dollar-watchers could prove to be Thursday’s US inflation numbers – the year-on-year price rise element is likely to show that the world’s premier economy has slipped into deflation.

For this reason, the US Dollar exchange rate forecast is now NEUTRAL TO NEGATIVE.

Swiss Franc Under Pressure

The SWISS FRANC (currency:CHF) slumped to its weakest level for five weeks in the market yesterday as investors moved out of safe haven assets thanks to last Friday’s agreement between Greece and the eurogroup.

However, geopolitical risk abounds and with Russian leader Vladimir Putin rating the chances of all-out war in Eastern Ukraine only as ‘unlikely’, there could be further surprises to come.

A renewed shift out of risk by investors would favour the Franc, meaning that analysts now anticipate that the Swiss Franc forecast is to trade on a NEUTRAL footing moving forward.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts