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Pound Sterling Foreign Currency Forecast vs EUR USD CHF - Elections Incoming

April 29, 2016 - Written by Toni Johnson

The coming week is set to bring UK local elections on Thursday; if London Mayor Boris Johnson is removed from his position, the 'Out' campaign may receive a major blow.

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Positive



The POUND STERLING (currency : GBP) has held its own against the other sixteen most actively traded global currencies today.

The UK unit continues to be buoyed by opinion polls suggesting that the ‘Remain’ campaign is beginning to pull out a meaningful lead in the EU In / Out referendum debate.

This morning’s government figures which revealed that the pace of expansion in Britain’s money supply slowed last month are unlikely to help the Pound in the short term, but the medium term forecast is for Sterling to trade on a NEUTRAL TO POSITIVE footing.

Euro (EUR) Exchange Rate Outlook Neutral to Negative



A brace of data sets from the euroland this morning have pulled the EURO (currency : EUR) in opposing directions.

Higher than anticipated Q1 Gross Domestic Product figures from the euro area helped the shared currency, but investors holding the single currency were alarmed to learn that, according to official statistics, deflation has returned to the eurozone this month.

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The outlook for the euro is NEUTRAL TO NEGATIVE and the GBP EUR exchange rate stands at 1.2822.

US Dollar (USD) Exchange Rate Outlook Neutral to Negative



The US DOLLAR (currency : USD) continues to perform weakly in the global currency markets following yesterday’s significantly lower than anticipated US Gross Domestic Product data.

Futures markets are now pricing in a sizeable chance that America’s headline interest rate will still be at 0.5% come the end of the year, (latest figures imply a 32.5% chance likelihood of this).

While this remains the case, the Buck is expected to put in a NEUTRAL TO NEGATIVE showing on the markets.

The Pound Sterling US Dollar exchange rate stands at 1.4635.

Swiss Franc (CHF) Exchange Rate Outlook Neutral to Negative



The SWISS FRANC (currency : CHF) has firmed against the Pound today in spite of comments from Swiss National Bank (SNB) Chairman Thomas Jordan.

The SNB Chief’s description of his nation’s currency as ‘significantly overvalued’ has so far failed to dent support for the Franc.

However, Jordan’s confirmation to shareholders of SNB that Switzerland’s central bank has, ‘resorted to unconventional methods and, as in the past, we will not shy away from using these methods if it is in the interests of the country as a whole,’ could weigh down CHF moving forward.

The Franc is forecast to trade on a NEUTRAL TO NEGATIVE footing into the medium term as a result and the GBP CHF exchange rate sits at 1.4068.



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TAGS: American Dollar Forecasts Euro Forecasts Pound Sterling Forecasts Swiss Franc Forecasts

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