Pound to Dollar Exchange Rate Predictions: Losses Forecast for GBP/USD Conversion

December 6, 2014 - Written by John Cameron

STORY LINK Pound to Dollar Exchange Rate Predictions: Losses Forecast for GBP/USD Conversion

Currency News UK Presents Our Latest Pound Sterling to US Dollar Exchange Rate Forecast

Central bank actions and comments stole the limelight during yesterday’s session in the currency markets, with the European Central Bank (ECB) President Mario Draghi suggesting that the earliest possible data for an expansion of his Bank’s asset purchase programme is now next March.

Latest USD Rate Today

The Pound to US Dollar conversion rate is 1.55795 GBP/USD.
The Euro to US Dollar exchange rate is 1 EUR equals 1.22850 USD.
The Swiss Franc to US Dollar exchange rate is 1 CHF equals 1.02155 USD.
The Canadian Dollar to US Dollar exchange rate today is converting at 0.87457 CAD/USD.

Share Markets Leak Support, VIX Jumps

Global stock markets leaked support in response to Draghi’s words, with London’s FTSE 100 closing down by just over half a percentage point, while the euroland’s bourses gave up even more ground. Paris’ Cac 40 was hit hard, giving up 1.57% of its value on the day, while Frankfurt’s benchmark Dax index shipped 1.20% on the session. Meanwhile, the closely-monitored VIX ‘Fear Index’ jumped to close to 13.25 during Draghi’s press conference, having traded at below the 12.50 threshold during the early part of the day.

Few Surprises From ECB

In truth, few analysts believed that Draghi would be announcing an escalation of his Bank’s monetary policy easy yesterday, so the European Central Bank President was adding little new to the mix. When the dust settles, most analysts agree that the ECB is still likely to go down the all-out QE route at some stage next year in spite of pronounced reservations from Germany. For this reason, the Pound Sterling euro exchange rate is still forecast to trade with a positive bias into the near-term.

US Beige Book Pleases

One factor which is likely to assist the performance of global share markets into the medium term is the continued positive performance from the world’s number one economy. The US Federal Reserve’s Beige Book, published on Wednesday evening, observed that ‘employment gains were widespread’ in the American economy since the last edition was published. Jerry Webman of OppenheimerFunds Inc. certainly agreed that the release spelled good news for the American and global economies alike; he stated that he couldn’t remember seeing one that’s been as encouraging in tone and added that the US economy is approaching the New Year with ‘positive momentum’.

Pound to Dollar Exchange Rate Forecast to Fall

If this afternoon’s US Non-Farm Payrolls data provides further grounds for encouragement, then expect global share markets to claw back some of their losses of yesterday, while analysts forecast that the Pound Dollar exchange rate GBP/USD will fall over coming sessions.

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