Pound Sterling Mexican Peso Exchange Rate Slumps on Clinton Performance, EUR USD Outlook

September 27, 2016 - Written by John Cameron

STORY LINK Pound Sterling Mexican Peso Exchange Rate Slumps on Clinton Performance, EUR USD Outlook

The POUND STERLING (currency : GBP) has been resurgent against the majority of the other sixteen most actively traded global currencies during today’s session. However, many analysts have been quick to suggest that the UK unit’s performance was no more than a ‘dead cat bounce’ and that talk of post-Brexit Britain being barred from the European single market will weigh down Sterling moving forward. The Pound is forecast to trade on a NEUTRAL TO NEGATIVE footing in the near-term.

Mexican Peso Boosted by Hillary Clinton US Debate Performance

The MEXICAN PESO (currency : MXN) was buoyed during overnight trade by the first of this year’s US Presidential debates. In the eyes of investors, a win in November’s election for Democratic candidate Hillary Clinton would be good news for the Peso. A result which would avoid a wall being built between the USA and Mexico will help the Peso, so the outlook for the Mexican currency is now NEUTRAL TO POSITIVE. The GBP MXN exchange rate stands at 25.4200.

Euro Weakened as Fears Build Over Potential Deutsche Bank Collapse

The EURO (currency : EUR) has once again struggled on the day today, giving up over 0.5c against the Pound and a slightly lesser amount against the Dollar. The shared currency's fortunes have been linked to those of beleaguered German retail bank Deutsche Bank (ETR: DBK), whose shares plunged to a fresh multi-decade low earlier. The prospect of one of the Euroland’s major lenders going under is likely to see the Euro trade on a NEUTRAL TO NEGATIVE bias moving forward and the GBP EUR exchange rate stands at 1.1598.

Uncertain US Dollar Could Advance on Hopes of Fed Rate Hike in December

The US DOLLAR (currency : USD) has enjoyed a middling day. Market participants remain unclear on when the US Federal Reserve might increase its benchmark interest rate, leaving the Buck directionless. December remains the favourite date for the next Fed hike, but futures markets imply that there is a 48% likelihood that the cost of borrowing Stateside will remain at its current level into 2017. The outlook for the Greenback is NEUTRAL TO POSTIVE and the GBP USD exchange rate stands at 1.2990.

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TAGS: Pound Sterling Forecasts