Pound Sterling Forecast to Improve vs Euro (EUR) Once More: GBP-EUR Predictions

August 26, 2015 - Written by John Cameron

STORY LINK Pound Sterling Forecast to Improve vs Euro (EUR) Once More: GBP-EUR Predictions

Australian Dollar, New Zealand Dollar Gain Today: GBP to AUD, NZD, Fall from Best Conversion Rates

Mixed messages from markets across the globe have caused significant movement for major currency pairs across the world during today’s trading session.

European stock markets suffered renewed losses when they opened earlier today, with London’s benchmark FTSE 100 once again slumping into the 5,000s – it was only a few short weeks ago that the UK’s leading share market had broken to a fresh record high above the 7,000 level. The euroland’s bourses suffered similar downside during this morning’s session. The renewed flight to safety from investors hampered the progress of the Australian Dollar (currency : AUD) and the New Zealand Dollar (currency : NZD) during early trading, with the Pound Sterling (currency : GBP) jumping to 2.4277against the Kiwi and tracking higher to 2.2122 versus the AUD.

US Durable Goods Orders Bolsters USD: US Dollar Gains on British Pound, Euro Today

However, a keynote piece of data, published at the start of the North American equities session has triggered a pronounced risk shift. The July edition of the closely-monitored US Durable Goods Orders data showed a monthly increase of 2.0% when analysts had been anticipating a print of -0.4%. June’s counterpart Durable Goods Orders figure was upwardly revised at the same time and the upshot sent American equities markets sharply higher – at the time of writing, the benchmark Chicago S&P 500 index was trading up by 2.0%. The news also triggered a bout of strong support for the US Dollar (currency : USD) as investors factored-in a higher percentage chance that the US Federal Reserve will be increasing its key interest rate this year. The move in favour of the Buck sent the Pound Sterling US Dollar exchange down to an intraday low of 1.5536 GBP USD and analysts forecast that there could be further losses to come later in the week for Cable.

ECB Stimulus Hints See Euro Falter against Pound, US Dollar: Further EUR Weakness Predicted?

Elsewhere, the recent good run of form from the euro (currency : EUR) may be nearing an end; European Central Bank Executive Board member Peter Praet suggested earlier that his Bank may consider expanding its Quantitative Easing programme thanks to fears of a Chinese economic collapse. Praet stated that, ‘developments in the world economy and in commodity markets have increased the downside risk of achieving the sustainable inflation path toward 2 percent. There should be no ambiguity on the willingness and ability of the Governing Council to act if needed.’ The fall-out helped the Pound Sterling euro exchange rate improve from the 1.3500s to back above 1.700 a short time ago.

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TAGS: Currency Predictions Euro Forecasts Euro Pound Forecasts