Exchange Rate Forecasts for British Pound, Euro, US Dollar and Swiss Franc

November 27, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecasts for British Pound, Euro, US Dollar and Swiss Franc

Dovish BoE Chief Economist Continues to Weigh on Sterling Demand

The POUND STERLING (currency : GBP) has been weighed down by dovish comments from Bank of England (BoE) policymakers during recent sessions.

The suggestion from the BoE’s Chief Economist Andy Haldane earlier in the week that UK interest rates could be cut before they head higher continues to weigh on the Pound, but the UK unit has a chance of redemption later this morning with the publication of provisional UK Q3 Gross Domestic Product data.

The outlook for the Pound is NEUTRAL.

Pound to Euro Exchange Rate Trending around 1.4251

The EURO exchange rate (currency:EUR) continues to loiter in the global currency market’s ‘dangerzone’.

Next week’s European Central Bank (ECB) policy meeting is considered crucial in the near-term, with analysts expecting the euroland’s reserve bank to announce a further loosening of its already ultra-loose monetary policy.

In the meantime, the latest whole of eurozone Consumer Confidence survey, out in the middle part of this morning’s session, is forecast to be market-moving.

The euro is forecast to trade on a NEGATIVE footing in the near-term and GBP EUR stands at 1.4251.

Pound to Dollar Exchange Rate Trending around 1.5117

The US DOLLAR (currency : USD) has enjoyed limited gains in the global FX markets during the past week.

However, with futures markets now pricing-in a 77.5% chance that next month will bring the announcement of interest rate ‘lift-off’ from the US Federal Reserve, there is a strong argument that the Buck is now undervalued.

With no further tier one data out of the US for the remainder of the week, the Greenback is expected to range-trade through to the weekend close.

However, the medium term outlook for the Dollar is POSITIVE; the GBP USD exchange rate stands at 1.5117.

Pound Sterling to Swiss Franc Conversion Rate Trending in the Region of 1.5476.

The SWISS FRANC (currency : CHF) continued to struggle against the Pound during yesterday’s session.

The Pound to Swiss Franc exchange rate briefly broke above the 1.5500 threshold following continued soft trading from Switzerland’s unit.

A generally ‘risk-on’ trading environment from global market participants has hurt the safe-haven Franc, and given the heavily negative rate of interest in Switzerland, the forecast for CHF is also NEGATIVE.

The Pound Swiss Franc (GBP/CHF) exchange rate stands at 1.5476.

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TAGS: Pound Dollar Forecasts Pound Euro Forecasts Pound Sterling Forecasts Pound Sw Forecasts