FX Predictions and Latest Rate News: Pound Sterling Forecast to Jump Against EUR USD on Carney Comments

July 14, 2015 - Written by Ben Hughes

STORY LINK FX Predictions and Latest Rate News: Pound Sterling Forecast to Jump Against EUR USD on Carney Comments

GBP Forecast to Jump on Carney Comments: GBP/EUR, GBP/USD Trending Higher Today

The Pound Sterling (currency:GBP) jumped ahead in the global currency markets during this morning’s session. Sterling climbed thanks to comments from Bank of England (BoE) Governor Mark Carney to the UK Parliament’s Treasury Select Committee which dropped heavy hints that domestic monetary policy may be tightened sooner rather than later.

Carney rocked the markets by observing that,‘the point at which interest rates may begin to rise is moving closer’, and went on to assert that, ‘once rates begin to adjust, we expect for those adjustments to be at a gradual pace and to a limited extent.’

GBP/EUR Currency Pair Hits Best Conversion Rate of 1.41

In spite of Carney’s expectation management techniques, aimed at assuaging investors’ fears that Base Rate might be hiked by several percentage points over the coming 18 months, the Pound rocketed against the other major global tenders. The Pound Sterling euro exchange rate touched 1.4158 a short time ago as American market participants priced-in the higher percentage chance of a British rate rise in the near term. Meanwhile, the Pound US Dollar exchange rate edged through the 1.5600 GBP USD threshold after Carney’s comments having started the day lodged in the 1.5400s.

UK Inflation Flat, Limits Pound Sterling (GBP) Exchange Rate Gains before Employment Data

Gains for Sterling on the day would have been of a considerably greater magnitude were it not for this morning’s UK CPI inflation figures which revealed that the pace of British price rises had edged lower to an annualised 0.0% last month – down from May’s counterpart showing of 0.1%. The data appeared to go against Carney’s later comments, showing that UK inflation has a long way to go before it climbs back up to the government’s stated target level of 2.0%.

Euro Exchange Rate Predictions: IMF Comments on Greece Could Drive EUR/USD, EUR/GBP Movement

Elsewhere, a report from the International Monetary Fund (IMF), leaked by unnamed sources earlier today, suggested that Greece requires a far larger volume of emergency debt relief than the Brussels Group has so far admitted. The IMF reportedly observed that,

‘The dramatic deterioration in debt sustainability points to the need for debt relief on a scale that would need to go well beyond what has been under consideration to date - and what has been proposed by the ESM.’

Many analysts now forecast that the Pound Sterling euro GBP EUR exchange rate will break through to a fresh 7 ½ year high sooner rather than later.

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TAGS: Euro Forecasts Euro Pound Forecasts Pound Dollar Forecasts Pound Euro Forecasts