Exchange Rate Predictions / Forecasts For Pound Sterling (GBP) Euro (EUR) Swiss Franc (CHF) US Dollar (USD)

Modified: Friday, 13 December 2013 09:53 BST - Written by Minesh Chaudhari

STORY LINK Exchange Rate Predictions / Forecasts For Pound Sterling (GBP) Euro (EUR) Swiss Franc (CHF) US Dollar (USD)

The POUND STERLING (currency:GBP) has had a good run of it over the past six months, registering healthy gains against the majority of the other major global currencies. However, the Pound has edged lower against the Dollar and the euro during the past week, suggesting that it was technically overbought as December started. A clear timeframe from the Bank of England for an interest rate hike is required for Sterling to win back its pep. In the meantime, the UK tender is forecast to trade with a NEUTRAL TO NEGATIVE bias.

The EURO (currency:GBP) has registered solid gains against Sterling this week, sending the Pound to Euro exchange rate down to 1.1863 GBP EUR yesterday. The single currency continues to benefit from the steady-handed tactics of the eurozone’s policymakers which brought the announcement of a new beefed-up emergency fund aiming at rescuing the region’s failing retail banks earlier in the week. Yesterday’s revelation from ECB President that sovereign debt will be included in the ECB’s banking stress tests next year has added to positive market sentiment towards the euro, which is now expected to trade on a NEUTRAL TO POSTIVE footing moving forward.

The SWISS FRANC (currency:CHF) gave up a little ground against Sterling on the day following the Swiss National Bank’s policy announcement of yesterday morning. As anticipated, the SNB left its key lending rate at 0.00% and reaffirmed its commitment to maintain the EUR CHF minimum floor at 1.20, however the Swiss National bank’s announcement that it has downgraded its domestic inflation forecast for 2014 and 2015 could weigh heavily on the Franc in the short term. The Swiss tender is therefore forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward and the Pound to Swiss Franc exchange rate stands at 1.4524 GBP CHF.

Market moment since the middle part of the week suggests that the tide may have turned for the US DOLLAR (currency:USD). The Greenback has been heavily out of favour for the majority of the past six months, but yesterday’s stronger than anticipated November Retail Sales numbers hint that the world’s leading economy has weathered the storm of October’s government shutdown. The outlook for the Buck is now NEUTRAL TO POSITIVE and the Pound to Dollar exchange rate exchange rate stands at 1.6341 GBP USD.

Relevant Foreign Exchange Rates (13/12/2013 10:00 GMT)

The Pound to Euro exchange rate is trading down -0.02% at 1.18802 GBP/EUR.
The Pound to Swiss Franc exchange rate is trading down -0.08% at 1.45248 GBP/CHF.
The Pound to US Dollar exchange rate is trading up +0.02% at 1.63418 GBP/USD.
The Euro to Pound exchange rate is trading up +0.02% at 0.84174 EUR/GBP.
The Euro to Swiss Franc exchange rate is trading down -0.05% at 1.22261 EUR/CHF.
The Euro to US Dollar exchange rate is trading up +0.04% at 1.37556 EUR/USD.

The US Dollar to Euro exchange rate is trading down -0.04% at 0.72698 USD/EUR.
The US Dollar to Pound exchange rate is trading down -0.02% at 0.61193 USD/GBP.

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