Exchange Rate Forecasts 2014 & Predictions For Euro, Pound Sterling, Dollar & Yen (EUR GBP USD JPY)

May 29, 2014 - Written by Frank Davies

STORY LINK Exchange Rate Forecasts 2014 & Predictions For Euro, Pound Sterling, Dollar & Yen (EUR GBP USD JPY)

Currency News UK brings you our Exchange Rate Forecasts and Predictions in 2014 for the currencies: Euro (EUR), Pound Sterling (GBP), Dollar (USD) and Japanese Yen (JPY) - Troubling news regarding the state of France’s public finances hasn’t stopped the EURO (currency:EUR) holding on to the gains which it recorded against the Pound Sterling yesterday during early trading today. The revelation that the Gallic nation faces a €14bn income shortfall thanks to a mammoth overestimation of its 2013 tax yields spells bad news for the single currency. Next week’s policy announcement from the European Central Bank could blacken the mood surrounding the euro further, so the forecast for the single currency is now NEUTRAL TO NEGATIVE. The GBP EUR exchange rate stands at 1.2291.

The POUND STERLING (currency:GBP) has once again failed to register any meaningful gains against the other sixteen most actively traded global currencies during early trading. The Pound has enjoyed a decent rally over the past four weeks as investors upped their bets regarding a near-term UK interest rate rise. However, many analysts now feel that Sterling has been over-promoted and the outlook for the Pound is now NEUTRAL in the short-term.

The US DOLLAR (currency:USD) has picked up a little support today, sending GBP USD down to as low as 1.6694 during the first half of the European equities session. Strong Durable Goods Orders data, published earlier in the week, has provided a tailwind for the Buck and further gains could be on the way if this afternoon’s Existing Home Sales numbers please. The consensus amongst analyst is that the Greenback will trade on a NEUTRAL TO POSITIVE footing moving forward.

Japanese retail sales data for last month showed that shop sales in Asia’s second economy shrank by a greater than anticipated 13.7%. Analysts had been expecting the figure to be bad following April’s domestic sales tax hike, but not that bad. The JAPANESE YEN (currency:JPY) has floundered against the other majors so far today in response to the statistics, sending the GBP JPY exchange rate up to as high as 170.20 earlier. The outlook for the Yen remains NEGATIVE.

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