Pound to Euro Forex Exchange Rate - Forecasting GBP/EUR Gains in 2015 and 2016

Modified: Friday, 6 February 2015 11:43 BST - Written by John Cameron

STORY LINK Pound to Euro Forex Exchange Rate - Forecasting GBP/EUR Gains in 2015 and 2016

Currency News UK Presents The Pound to Euro Forecast on Exchange Rate Markets

The Bank of England confirmed that it will be maintaining Base Rate at its current record low of 0.50% earlier today and the POUND STERLING (currency:GBP) consolidated as a result.

The announcement maintains Sterling’s status as a relatively high-yielding currency in European terms, and with no hint that the Old Lady of Threadneedle Street will be trimming its key lending rate at any stage, the outlook for Sterling remains NEUTRAL TO POSITIVE.

Latest Pound Exchange Rates (06/02/2015)

The Pound to Euro exchange rate today is converting +0.35 per cent higher at 1.34032 GBP/EUR.
The Pound to US Dollar exchange rate is +0.13 pct higher with a conversion rate of 1 GBP equals 1.53406 USD.
The Euro to Pound Sterling exchange rate is -0.35 pct lower with a conversion rate of 1 EUR equals 0.74609 GBP.
The Euro to US Dollar exchange rate is -0.22 pct lower with a conversion rate of 1 EUR equals 1.14454 USD.

Greece Situation Pressurises EUR/GBP Exchange Rate

The EURO (currency:EUR) has encoundered sustained selling pressure during this afternoon’s trading session following the news from the eurozone that the European Central Bank (ECB) has begun to harden its stance against Greece.


The euroland’s reserve bank stated earlier that it will no longer be accepting Greek government bonds as collateral for lending money to commercial banks, as of next week.

The Greek stock market, and in particular banking shares, tumbled in response to the news.

The single currency is still forecast to trade on a firmly NEGATIVE footing into the long term and GBP EUR stands at 1.3387.

US Dollar Exchange Rate Suppressed by US Interest Rate Forecast

The US DOLLAR (currency:USD) has continued to leak support against the Pound during today’s session, sending the GBP USD exchange rate up through the 1.5300 threshold earlier on.

Tomorrow’s session brings the publication of this month’s Non-Farm Payrolls data which has the potential to affect levels on the Buck.

However, the main factor holding back the Greenback in the near-term appears to be the general impression amongst investors that it may be some time before the US Federal Reserve feels the need to increase interest rates.

The Buck is therefore forecast to trade with a NEUTRAL TO NEGATIVE bias moving forward. GBP USD stands at 1.5296.

Australian Dollar in Trouble Following Rate Cut

Last night’s stronger than anticipated Australian retail sales data has not proved enough to turn around the fortunes of the AUSTRALIAN DOLLAR (currency:AUD) in the short term.

The Aussie continues to be hampered by the Reserve Bank of Australia’s surprise decision to trim its key lending rate earlier this week.

The GBP AUD exchange rate continues to loiter at close to its 5 ½ year high and there could be further gains for the pair if tonight’s RBA suggests in its monetary policy statement that there are further cuts to come for the Aussie.

The outlook for the Australian unit is NEUTRAL TO NEGATIVE and GBP AUD stands at 1.9636.

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