Exchange Rate Forecast for Pound Sterling, Euro, US Dollar & Japanese Yen - Sterling Jumps after 'Brexit' Poll

June 6, 2016 - Written by John Cameron

STORY LINK Exchange Rate Forecast for Pound Sterling, Euro, US Dollar & Japanese Yen - Sterling Jumps after 'Brexit' Poll

In a continuing trend for the Pound, the currency has recently jumped on account of EU Referendum polling putting 'Remain' out in front.

If the Pound is to have any chance of rising against any of its peers tomorrow, it needs the BRC like-for-like sales result for May to rise far in advance of the currently predicted growth forecast.

Pound Sterling Exchange Rate Outlook Neutral to Negative

The POUND STERLING (currency : GBP) continues to be weighed down by fears that the British electorate could be about to vote for a ‘Brexit’. The narrowing of the ‘Remain’ campaign’s lead in recent opinion polls has hurt the Pound, as has the widely-held opinion that the UK government has overplayed ‘Project Fear’.

Sterling is forecast to perform on a NEUTRAL TO NEGATIVE footing in the short-to-medium term as a consequence.

Euro Exchange Rate Outlook Neutral to Negative

The EURO (currency : EUR) staged a late comeback against the US Dollar during last week’s session in the markets. The move in favour of the shared currency came by dint of a sharp weakening in levels of support for the Buck following the publication of a dire American jobs report. The single currency will need a decent showing from tomorrow’s whole of eurozone Gross Domestic Product data in order to benefit from an organic improvement, however.

In the meantime, the outlook for the euroland tender is NEUTRAL TO NEGATIVE and the Pound euro exchange rate sits at 1.2823 GBP EUR.

US Dollar Exchange Rate Outlook Neutral to Negative

Friday’s publication of the worst monthly American job creation numbers for almost six years are expected to hold back the US DOLLAR (currency : USD) in the short term.

Investors have rapidly moved to scale back their forecast for a Federal Reserve interest rate hike at this month’s meeting; in the meantime, the Buck is expected to trade with a NEUTRAL TO NEGATIVE bias. The GBP USD exchange rate stands at 1.4531.

Japanese Yen Exchange Rate Outlook Neutral to Negative

The move in support of the JAPANESE YEN (currency : JPY) has continued to pick up momentum during the past week. Japanese Prime Minister Shinzo Abe’s announcement that his government will be delaying a proposed increase to domestic sales tax until 2019 has helped the local unit, but fears persist that all is not well with Japan’s economy.

The Yen was over 50% stronger against Sterling than it was a year ago, so it now appears wide open for a bout of speculative selling pressure. For the moment, the outlook for the Japanese tender is NEUTRAL TO NEGATIVE and GBP JPY stands at 155.26.

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TAGS: American Dollar Forecasts Euro Forecasts Japanese Yen Forecasts Pound Sterlin Forecasts