British Pound, Euro and US Dollar Weekly Exchange Rate Outlook, Forecasts & FX Predictions 2015

November 10, 2014 - Written by John Cameron

STORY LINK British Pound, Euro and US Dollar Weekly Exchange Rate Outlook, Forecasts & FX Predictions 2015

Currency News UK brings you the latest currency exchange rate forecasts for the Pound Sterling in relation to the key global currencies, the Euro and the US Dollar.

The weekend market shutdown brought news of interesting comments from the leader of one of the world’s most significant powers. China’s President Xi Jinping addressed business leaders in Beijing and his comments, apparently designed to assuage investors’ fears regarding a renewed global slowdown, may serve to have the opposite effect.

Here are the latest exchange rates: (11/11/2014)

The Pound to Euro exchange rate converts +0.07 per cent higher at 1 GBP is 1.27642 EUR.
The Pound to Dollar exchange rate today is converting +0.44 per cent higher at 1.59205 GBP/USD.

Comments From China Threaten Risk Appetite

Jinping observed that, ‘there are indeed risks (to growth), but it's not so scary.’

With evidence building that economic activity in China is heading Southwards, the suggestion that he is relaxed about a lower level of growth may cause market participants to shift into safe haven assets during coming sessions.

Such an outcome would be likely to send the Pound Sterling (currency:GBP) higher against the risk-sensitive South African Rand (currency:ZAR) as well as the Commodity Dollars (the Australian Dollar [currency:AUD], New Zealand Dollar [currency:NZD] and the Canadian Dollar [currency:CAD]).

Three Risk Events Dominate Data Schedule

Looking ahead to this week, three major risk events from three major global economies are likely to elicit pronounced market movement.

Wednesday morning brings the publication of its Quarterly Inflation Report from the Bank of England (BoE), with Sterling-watchers likely to examine it in extreme detail for any hints on the likely timing of the next UK interest rate hike.

The conventional wisdom amongst economists during the latter part of Summer was that, with the impressive tone of recent British data releases and with domestic inflation running at, or close to, the government’s stated target of 2.0%, the BoE was likely to be one of the first major global central banks to countenance a tightening of its monetary policy.

The consensus opinion was that April might bring the first in a series of rate increases.

Pound Exchange Rate Forecast: GBP Sentiment Sours

However, the intervening period has seen the latest UK inflation suggest that the pace of British price rises has tumbled to close to an annualised 1.0%, while the price of a barrel of crude oil has plunged to its lowest level for four years.

The developments have prompted senior BoE officials to suggest that investors may now have to wait longer than was previously anticipated for a British interest rate hike.

If Wednesday morning’s missive from Britain’s reserve bank confirm these observations, then look for the Pound to give up a substantial amount of ground against the other major global tenders.

US Dollar Exchange Rate Forecast: Friday Brings Key US & Euroland Releases

Elsewhere, Friday sees the publication of the latest whole of eurozone Gross Domestic Product growth numbers and analysts predict that the Q3 result will show no change in the rate of increase in eco0nic activity from the Q2 annualised showing of 0.7%.

Such a result could be taken one of two ways – if you’re a glass half empty person, then you would say that the euroland economy is stagnating.

If you prefer to see the glass as being half full, then you would point out that finally the euro area’s economic ">slowdown appears to be bottoming out.

Meanwhile, Advance Retail Sales numbers, published later the same day in the US, will give investors a steer on the state of the American economy ahead of the weekend market close.

A bounce back is forecast following September’s disappointing showing – such a result would assist the US Dollar (currency:USD).

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