Foreign Currency Exchange Rate Predictions For EUR GBP USD CHF

Modified: Wednesday, 14 August 2013 16:40 BST - Written by Tim Boyer

STORY LINK Foreign Currency Exchange Rate Predictions For EUR GBP USD CHF

Foreign Currency Exchange Rate Predictions For EUR GBP USD CHF: The EURO has failed to capitalise on this morning’s news that the eurozone has officially emerged from recession. The latest GDP growth data for the region, published earlier, revealed that economic activity expanded by 0.3% during the three months leading up to June, but the GBP EUR exchange rate (currency : GBP EUR) has climbed to as high as 1.1703 this afternoon. The outlook for the single currency is NEUTRAL TO NEGATIVE.

The POUND STERLING has fared well on the day thanks to a positive set of Bank of England minutes which revealed that eight of the Bank’s nine-man monetary policy committee backed new BoE Governor Mark Carney’s ‘Forward Guidance’ policy at this month’s get-together. The scheme requires the overall level of UK unemployment to drop below the 7.0% threshold before a rise in British interest rates will be considered. The Pound is forecast to trade on a NEUTRAL TO POSITIVE footing moving forward.

The US DOLLAR has given up ground against the Pound so far today sending the GBP USD exchange rate up to 1.5506. The Greenback is leaking support thanks to a shift out of safe haven assets from institutional investors as the evidence mounts up that the global economy is emerging from the deep slump which it entered in the aftermath of the 2007/08 credit crisis. However, the Buck may gain ground in the near-term as the improved economic landscape is likely to prompt the Federal Reserve to begin tapering QE sooner rather than later. The Dollar is expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

The SWISS FRANC has struggled so far this week, sending the GBP CHF exchange rate up to 1.4520 today. Switzerland’s tender has struggled on the day because of a generalised uptick in appetite for risk across continental Europe due to the news that the eurozone has officially emerged from recession. The move against the Franc suggests that it is still operating as a safe haven currency. The CHF is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.

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