GBP/USD & GBP/EUR Exchange Rate Forecasts Improve on Today's UK GDP & US Homes

October 22, 2014 - Written by John Cameron

STORY LINK GBP/USD & GBP/EUR Exchange Rate Forecasts Improve on Today's UK GDP & US Homes

Presenting our latest foreign exchange rates forecasts for the British Pound (GBP) vs Euro (EUR) and US Dollar (USD) exchange rate pairings and today's current conversions.

A key US data release has sent investors scrambling to alter their forecast for the Pound to Dollar and euro exchange rates this afternoon.

A quick look at the latest conversion rates today:

The Pound to Euro exchange rate converts +0.17 per cent higher at 1 GBP is 1.26942 EUR.
The US Dollar to Euro exchange rate is +0.52 pct higher with a conversion rate of 1 USD equals 0.79065 EUR.
The Australian Dollar to Euro conversion rate is +0.61 pct higher at 0.69391 AUD/EUR.
The Pound to US Dollar exchange rate today is converting -0.34 per cent lower at 1.60556 GBP/USD.
The Euro to US Dollar conversion rate is -0.52 pct lower at 1.26479 EUR/USD.

Don't forget if you are waiting to find better exchange rates for a international payments, then you're best bet is to set up your future rate order with a foreign exchange broker.

Pound to Dollar Rate Forecast: GBP/USD

The US Dollar (currency:USD) enjoyed a much-needed boost during afternoon trading today, when the latest domestic Consumer Price Index inflation data revealed that American price rises had unexpectedly stayed level at an annualised 1.7% last month.

Analysts had been anticipating a showing of 1.6%, so in relative terms at least, this was a positive result for the Buck.

The net effect saw the Pound to Dollar drop to an intraday low of 1.6010 GBP USD earlier, but the pair did not quite have the legs to break back down into the 1.5000s.

However, the renewed bout of support for the Greenback did not convince everyone.

Matt Derr of Credit Suisse, talking a few hours ago about the US inflation figure, observed that, “it’s nice we didn’t have another flat number - the concern last week was on the threat of global slowdown.’ He went on to state that his bank is, ‘still waiting for the right moment to buy the Dollar again. The decline could run a little bit further.’

Based on these words, it appears that Credit Suisse, if no one else, forecasts that the Pound Dollar exchange rate will be going higher before it re-establishes its previous downtrend.

Consecutive closes below its existing 13 ½ month low of 1.5854 GBP USD would send out a strong negative signal for the pair.

Pound to Euro Exchange Rate Forecast: GBP/EUR

Elsewhere, the Pound to Euro broke back above the 1.2700 GBP EUR level for the first time since last Tuesday’s disappointing UK inflation data this afternoon.

GBP to EUR was also a beneficiary of the American price rise numbers thanks to arbitrage trading triggered by the data.

The euro vs Dollar rate slid from the middle part of the 1.2700 – 1.2800 EUR USD range this morning down to 1.2645 after the US CPI number and the attendant weakening of the single currency was reflected in price action for GBP EUR.

The pair is now once again within sight of last month’s 27-month peak of 1.2876.

Analysts forecast that a significant break above this level would see GBP EUR settle in the 1.3000s into the medium term.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts