Forex Predictions: Gains Forecast for Pound Sterling GBP vs Euro EUR on BoE Meeting Minutes

July 21, 2015 - Written by John Cameron

STORY LINK Forex Predictions: Gains Forecast for Pound Sterling GBP vs Euro EUR on BoE Meeting Minutes

BoE Meeting Minutes Forecast to Push GBP to EUR, USD Conversion Rates Higher

The Pound registered a small decline against the US Dollar yesterday but registered significant losses against rivals like the Australian Dollar and Euro as investors fixated on new UK spending cuts and their potential impact on the UK's economic recovery. However, if today's BoE minutes show a split vote on when to raise interest rates the Pound could recover losses.

Earlier...

Pound Sterling (GBP) Exchange Rate Forecast for Gains against USD, EUR, CAD

Yesterday’s data roster was relatively light but the next 24hrs more than make up for this with a raft of significant data releases from around the globe. Analysts forecast pronounced market movement for the Pound Sterling (currency:GBP) against several other leading global currencies as a consequence.

GBP/AUD at 6-Year Best Exchange Rate Today

The Pound Sterling Australian Dollar exchange rate has spiked to above the 2.1200 GBP AUD threshold during recent sessions, but market watchers predict that the pair’s direction of travel could be about to alter. The Q1 version of Australia’s official Consumer Price Index data revealed that the pace of price rises in the antipodean nation had slumped to a year-on-year 1.3%, but if the Q2 edition of the keynote inflation numbers point to the expected increase to 1.7% then the Australian Dollar (currency:AUD) could be about to stage a comeback. The next significant level tracking lower for GBP AUD comes at two to one and a strong showing from the Aussie price rise numbers could see the pair peel back towards this level of support.

UK Public Borrowing Figures Forecast to Impact GBP/EUR, GBP/USD Exchange Rate Trading

Elsewhere, this morning’s UK public borrowing numbers also have the potential to be market-moving. The level of British Public Sector Net Borrowing stood at £9.4bn and economists are anticipating a slight reduction to £8.7bn for the July print. Although such a result would still mark a staggering level of public borrowing for an economy, the Pound Sterling could enjoy a relief rally against the other major global units as a consequence. Look for a break Northwards towards the 1.5800 barrier for the Pound US Dollar exchange rate as a result and expect the Pound Sterling euro exchange rate to jump towards its next psychologically key level of 1.4500.

BoE Meeting Minutes Crucial to Future Foreign Currency Conversion Rate Movement

Tomorrow morning also brings the publication of the minutes of this month’s Bank of England (BoE) monetary policy committee meeting. Comments from the BoE Governor Mark Carney since the last UK policy meeting suggest that the Monetary Policy Committee’s last get-together suggest that Britain’s Base Rate may be on the way Northwards as soon as Q1 2016. If the minutes back this up, then expect Sterling to record further gains.

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TAGS: Euro Forecasts Euro Pound Forecasts Pound Euro Forecasts