Foreign Currency Exchange Rate Outlook for Pound (GBP), Euro (EUR) US Dollar (USD) and Franc (CHF) - Swiss Currency Gives Up Ground

June 11, 2015 - Written by John Cameron

STORY LINK Foreign Currency Exchange Rate Outlook for Pound (GBP), Euro (EUR) US Dollar (USD) and Franc (CHF) - Swiss Currency Gives Up Ground

UK GDP Pushes Pound Sterling (GBP) Exchange Rate Higher

Yesterday afternoon’s NIESR GDP growth estimate for the UK economy helped the POUND STERLING (currency:GBP) on the day, with the British unit trading into positive territory against most of the other sixteen most actively traded global currencies. Yesterday morning’s UK Industrial Production numbers also provided some grounds for optimism for Sterling-holders, so the outlook for the Pound is now NEUTRAL TO POSITIVE.

Euro Currency Movement Triggered by Greek Talks Today, EUR Softer

The EURO (currency:EUR) floundered during yesterday’s trading in the global markets as investors grew increasingly nervous regarding the ongoing debt impasse between Athens and the eurogroup. The shared currency badly needs a rapid accord between Brussels and the debt-addled nation’s policymakers in order to release further funding before the month end when over €1.5bn worth of debt repayment is due to the International Monetary Fund. Analysts continue to forecast that the shared currency will trade on a NEGATIVE footing moving forward and the Pound Sterling euro exchange rate currently sits at 1.3720.

Euro Outlook Negative

US Dollar Gives Up Jobs Data Related Gains, But Exchange Rate Outlook Neutral/Positive

The US DOLLAR (currency:USD) has struggled in the markets since the weekend shutdown. The Buck has given up ground against the euro, sending EUR USD higher and the attendant arbitrage trading has seen the Greenback give up ground against the other major global currencies. However, given the highly positive tone of last Friday’s US jobs data, the Dollar may be due a renaissance any time soon. If the Federal Reserve suggests that a rate hike could be imminent in the States, then look for GBP USD to retrace back down towards the 1.5000 threshold; the outlook for the Buck is therefore NEUTRAL TO POSITIVE and GBP USD stands at 1.5520.

The GBP/USD exchange rate was trending in the region of 1.5499

CHF Tumbles Against Strengthening GBP Exchange Rate

The SWISS FRANC (currency:CHF) lost a considerable amount of ground against Sterling yesterday, sending the GBP CHF exchange rate up to as high as 1.4452 during late trading. The Swiss unit has been increasingly behaving as a safe haven currency since the Swiss National Bank ended its EUR CHF minimum floor policy in January, so the Franc suffered as share markets soared yesterday. If Greece reaches a debt deal with its creditors, then expect the Franc to suffer further losses, making the outlook for the Swissie NEUTRAL TO NEGATIVE. GBP CHF sits at 1.4444.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts