Pound Sterling Euro Exchange Rate Forecast, USD JPY Outlook

September 26, 2016 - Written by John Cameron

STORY LINK Pound Sterling Euro Exchange Rate Forecast, USD JPY Outlook

Analysts forecast that the POUND STERLING (currency : GBP) will continue to be weighed down in the near-term by comments from European Union policymakers suggesting that post-Brexit Britain will not be permitted access to the single market unless it signs up to freedom of movement of labour. If Friday’s domestic Gross Domestic Product data disappoints, then Sterling could fall off a cliff; in the meantime the outlook for the Pound is NEGATIVE.

Euro Exchange Rate to be Buoyed by Hopes of No Further ECB Easing?

The EURO (currency : EUR) has recorded gains against Sterling during the past ten days as investors factor-in a generalised unwillingness from the world’s central banks to countenance any further policy loosening. This development gives holders of the Euro some hope that the European Central Bank (ECB) may not now extend its ongoing Quantitative Easing programme past its current estimated end date of March 2017. The outlook for the shared currency is NEUTRAL and the Pound Euro exchange rate sits at 1.1555 GBP EUR.

US Dollar to Advance on Strong Bets of December Interest Rate Hike

The US DOLLAR (currency : USD) was resurgent against the Pound at the end of last week as investors digested the latest policy statement from the US Federal Reserve. The news that three of the US central bank’s policy board had voted for an immediate interest rate hike buoyed the Buck and futures markets now price-in a hefty 54.2% chance that American interest rates will be higher by the end of the year. For now, analysts forecast that the US unit will perform on a NEUTRAL TO POSITIVE footing moving forward and the Pound Dollar exchange rate stands at 1.2966 GBP USD.

Speculation Over Possibility of Additional Bank of Japan Easing to Weigh on Japanese Yen

The JAPANESE YEN (currency : JPY) has strengthened in the wake of last week’s Bank of Japan (BoJ) monetary policy announcement. Investors holding Yen-denominated assets were relieved that the BoJ resisted the temptation to further trim its benchmark interest rate from its current level of -0.10%. However, the BoJ’s announcement that it will be buying-up government gilts in order to keep their yield from falling below zero has triggered rumours that it may be paving the way for future cuts in its headline interest rate. For this reason, the Yen forecast is NEUTRAL TO NEGATIVE while the GBP JPY exchange rate stands at 130.900.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Currency Predictions