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Pound Sterling Euro GBP EUR Exchange Rate Forecast Continue to Fall

October 5, 2015 - Written by John Cameron

Shock US Jobs Data Sees USD Exchange Rate Plummet & EUR, GBP, AUD, NZD Fluctuate



Analysts had been anticipating another showing of over 200,000 from this afternoon’s US Non-Farm Payrolls job creation numbers. When the data showed that a relatively lowly 142,000 new positions had been created in the world’s premier economy during September, there were major ramifications for some of the world’s leading global equities markets; London’s FTSE 100 had climbed to above the 6,150 level before the North American open. However, the premier UK index pulled back to close only marginally above the 6,000 level following the US release. Meanwhile, the broad-ranging S&P 500 index in the States lost over 0.50% of its value in the aftermath of the publication.

October Rate Hike from Fed Unlikely, Is US Dollar Conversion Rate Predicted to Hold Declines?



The news also provoked significant price action for more than one of the world’s premier currency pairs. The fact that August’s counterpart NFP print was downwardly revised to 136,000 added to the volatility in the markets. Our leading analyst takes a closer look at the price action which has followed this surprising data publication below.

British Pound to US Dollar Exchange Rate Hits Best Level of 1.52



The US DOLLAR (currency : USD), unsurprisingly, suffered pronounced downside following the NFP release. The big miss saw investors scale back their expectations for a US interest rate hike this year; the consensus amongst analysts had been for a December hike, but following the disappointing jobs data from the States, futures markets have now pushed this back to March. The Pound Sterling US Dollar exchange rate jumped to as high as 1.5238 this afternoon and most FX insiders forecast that there could be further upside to come for the pair in the near-term.

EUR Forecast: Euro Exchange Rate Gains on GBP, USD on US Dollar Losses



The EURO (currency : EUR) was the major beneficiary of today’s US jobs number. The euro Dollar exchange rate edged back above the 1.1300 EUR USD trading rate following the release as investors scaled back their expectations for a Federal Reserve interest rate hike. The attendant arbitrage funding saw the Pound Sterling euro exchange rate plunge to as low as 1.3425 by the middle part of today’s US equities session. Analysts predict that there could be further upside to come for the shared currency thanks to the news from the States.

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