Rally Predicted for Pound Sterling US Dollar Exchange Rate GBP USD

July 24, 2015 - Written by John Cameron

STORY LINK Rally Predicted for Pound Sterling US Dollar Exchange Rate GBP USD

Conversion Rate Outlook for the Japanese Yen JPY Today

The International Monetary Fund (IMF) has issued a report within the last 24hrs which analysts forecast will have a pronounced effect on the relative value of the Japanese Yen (currency:JPY) moving forward.

The Pound Sterling Japanese Yen exchange rate tracked Northwards to 192.470 GBP JPY during the middle part of today’s session following the publication of the IMF’s report which predicted that, ‘Japan's public debt is unsustainable under current policies’. It went on to countenance that, ‘a credible medium-term fiscal consolidation plan is needed ...to put debt on a downward path.’

IMF Predicts GBP to JPY Exchange Rate to Break Through Psychological Barrier

The IMF also noted a ‘modest recovery’ in Japan’s economy and suggested that this slight pickup in levels of economic activity in the Asian nation had been overly-dependent on the weakening of the Yen during the past 24 months. Analysts now forecast that the Pound Yen exchange rate may break through the psychologically significant 200 threshold sooner rather than later.

Currency News Now: US Pending Home Sales Slump, US Dollar Falls against Pound USD/GBP Today

Elsewhere, this afternoon’s US New Home Sales data came out well below analysts’ expectations. The print of -6.8% versus an anticipated -0.3% hit the US Dollar (currency:USD) hard and the Pound Sterling US Dollar exchange rate spiked to an intraday high of 1.5523 GBP USD as a consequence. Investors expect further movement for the pair during the middle part of next week, with Wednesday evening’s Federal Reserve monetary policy decision providing a real highlight. Any move on interest rates is considered unlikely from the Fed this month, but market participants will be poring over the text which accompanies the announcement looking for clues on when ‘lift off’ for American interest rates will take place. There’s an outside chance that September’s meeting will bring the first interest rate hike since the global financial crisis, but December is still considered the most likely month for ‘lift-off’ by analysts. The meeting takes place between 15th – 16th December and a rate hike could dampen the usual ‘Santa rally’ for equities which takes place at this time of year.

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TAGS: Japanese Yen Forecasts Pound Dollar Forecasts Pound Euro Forecasts