2015 Exchange Rate Forecasts: Volatility for Pound Sterling, Euro & Dollar as FTSE 100 Soars

March 23, 2015 - Written by John Cameron

STORY LINK 2015 Exchange Rate Forecasts: Volatility for Pound Sterling, Euro & Dollar as FTSE 100 Soars

Currency News Brings You Our Latest Pound to Euro and Pound to US Dollar Exchange Rate Forecasts

Last Friday’s session saw the Pound Sterling exchange rate complex take a late hammering following the reporting of market whispers regarding the potential next move from the Bank of England (BoE).

The wires were full of the news that a BoE ‘insider’ had made ‘unofficial’ comments suggesting that the next policy move coming out of the Old Lady of Threadneedle Street might not necessarily be the interest rate hike which has been widely expected for the past couple of years.

Key Exchange Rates Today:

The Pound to Australian Dollar conversion rate is -0.69 pct lower at 1.88568 GBP/AUD.
The Pound to Euro exchange rate is -0.4 pct lower with a conversion rate of 1 GBP equals 1.36049 EUR.
The Pound to US Dollar exchange rate is -0.72 pct lower with a conversion rate of 1 GBP equals 1.48417 USD.

Reports that the BoE official considered a domestic rate cut ‘as likely’ as an increase to the cost of borrowing saw investors shift en masse out of Sterling-denominated assets during the hours which lead up to the weekend market shutdown.

The upshot saw the Pound Sterling to euro exchange rate trade down into the 1.3700s GBP EUR, while the Sterling New Zealand Dollar exchange rate edged to its lowest level for some months and was bearable able to maintain above the 1.9700 GBP NZD threshold.

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Sterling-watchers won’t have to wait long in order to receive the next steer on the likely future direction of UK monetary policy. Tomorrow morning’s February Consumer Price Index inflation numbers are very likely to prove market-moving for Sterling pair. Commentators are anticipating that the keynote statistic will reveal that the pace of British price rises came close to zero last month – a showing of 0.0%, (or just above), would be likely to provide further grist for the ‘UK rate cut’ rumour mill, triggering a renewed move out of Sterling-denominated assets. In such an event, analysts forecast that the GBP EUR exchange rate will trade back down into the 1.3600 once more.

Elsewhere, tomorrow afternoon also brings the publication of the American version of the same February inflation figures in the States. The US Dollar (currency:USD) has endured sustained selling pressure wince the Federal Reserve’s decidedly dovish policy statement of Wednesday evening. If tomorrow’s US price rise numbers confirm that inflation in the US remains at anaemic levels, then investors are likely to surmise that an American rate increase remains a long way off. Commentators forecast that the Pound Sterling US Dollar exchange rate will settle above the psychologically-significant 1.5000 GBP USD threshold in such a circumstance.

Other Popular Pound Sterling Exchange Rate Conversions

The Pound to Canadian Dollar exchange rate converts -0.85 per cent lower at 1 GBP is 1.85603 CAD.
The Pound to Swiss Franc exchange rate converts -1.49 per cent lower at 1 GBP is 1.42382 CHF.
The Pound to Chinese Yuan exchange rate converts -0.87 per cent lower at 1 GBP is 9.20942 CNY.
The Pound to Hong Kong Dollar exchange rate is -0.73 pct lower with a conversion rate of 1 GBP equals 11.51057 HKD.
The Pound to Japanese Yen exchange rate today is converting -0.74 per cent lower at 177.72490 GBP/JPY.
The Pound to New Zealand Dollar conversion rate is -0.49 pct lower at 1.94404 GBP/NZD.
The Pound to Polish Zloty conversion rate is -0.76 pct lower at 5.56999 GBP/PLN.
The Pound to Swedish Krona exchange rate today is converting -0.69 per cent lower at 12.62871 GBP/SEK.
The Pound to Singapore Dollar exchange rate today is converting -0.8 per cent lower at 2.02866 GBP/SGD.
The Pound to Turkish Lira conversion rate is -0.15 pct lower at 3.79487 GBP/TRY.

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