Foreign Exchange Rate Forecasts / Predictions For Euro, Pound, Dollar & Swiss Franc

Modified: Wednesday, 5 February 2014 19:16 BST - Written by Ben Hughes

STORY LINK Foreign Exchange Rate Forecasts / Predictions For Euro, Pound, Dollar & Swiss Franc

The EURO (currency:EUR) has hoovered up support on the day, sending the Euro Pound exchange rate up to as high as 0.8316 EUR/GBP earlier on. The move in favour of the single currency comes in spite of a tame whole of eurozone composite Purchasing Manger Index survey, published earlier. However, gains for the euro against the Pound and the other sixteen most-actively traded global currencies may prove to be short-lived. Expect tomorrow afternoon’s press conference from European Central Bank President Mario Draghi to yield more comments hinting at further interest rate cuts for mainland Europe. The Euro exchange rate forecast is therefore expected to trade with a NEUTRAL TO NEGATIVE bias in the short term.

UK services sector data has been relatively strong in recent months, but this morning’s PMI survey of this key sector of the British economy disappointed, coming in at a below expectations 58.3. The news has held back the POUND STERLING (currency:GBP) on the day and there could be more bad news to come for Sterling tomorrow lunchtime given the generalised softening in UK data since the turn of the year. Any negative commentary accompanying the bank of England’s latest policy announcement would confirm the NEUTRAL TO NEGATIVE outlook for the Pound Sterling forecast.

The US DOLLAR (currency:USD) has continued to bully the Pound Sterling during early trading today. An encouraging set of US Factory Orders data for December out yesterday afternoon, have helped support the Buck, fuelling speculation that another QE cut is on its way later in the month. After last month’s disappoint, it is highly possible that Friday’s US jobs figures will provide further cause for encouragement, so the Greenback is forecast to trade on a NEUTRAL TO POSITIVE footing as a consequence.

The SWISS FRANC (currency:CHF) has continued to claw back its medium term losses against Pound Sterling this week, sending the Pound Swiss Franc exchange rate down to as low as 1.4674 GBP/CHF earlier on. A far better than anticipated Swiss PMI survey on Monday morning set the tone for the week, while continuing fears regarding the apparent slowdown in the Chinese economy are likely to favour the safe-haven Franc during coming weeks. The Swiss Franc exchange rate forecast to trade on a NEUTRAL TO POSITIVE basis as a result.

Key Pound Sterling, Euro, US Dollar & Swiss Franc Exchange Rates (As of: 13:45 GMT 05/02/2014)

The Pound Sterling to Swiss Franc exchange rate is trading down -0.47% at 1.46935 GBP/CHF.
The Pound Sterling to Euro exchange rate is trading down -0.43% at 1.20298 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.33% at 1.62749 GBP/USD.
The Euro to Swiss Franc exchange rate is trading down -0.04% at 1.22143 EUR/CHF.
The Euro to Pound Sterling exchange rate is trading up +0.43% at 0.83127 EUR/GBP.
The Euro to US Dollar exchange rate is trading up +0.1% at 1.35289 EUR/USD.

The US Dollar to Swiss Franc exchange rate is trading down -0.14% at 0.90284 USD/CHF.
The US Dollar to Euro exchange rate is trading down -0.1% at 0.73916 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading up +0.33% at 0.61444 USD/GBP.
The Swiss Franc to Euro exchange rate is trading up +0.04% at 0.81871 CHF/EUR.
The Swiss Franc to Pound Sterling exchange rate is trading up +0.47% at 0.68057 CHF/GBP.
The Swiss Franc to US Dollar exchange rate is trading up +0.14% at 1.10762 CHF/USD.

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