British Pound Sterling (GBP) Current Exchange Rate Forecast vs EUR USD CHF

January 27, 2016 - Written by Minesh Chaudhari

STORY LINK British Pound Sterling (GBP) Current Exchange Rate Forecast vs EUR USD CHF

Pound Sterling (GBP) Outlook Neutral to Negative on Low Crude Prices

Movement for the POUND STERLING (currency : GBP) is displaying an increasingly strong correlation with the price of a barrel of crude oil. Yesterday’s session saw the value of ‘Black Gold’ jump back above the $32 threshold and the Pound enjoyed a strong session as a consequence. Brent recently hit a relative high of $34.30 and has managed to hold gains so far.

Market participants believe that there’s no chance that the Bank of England will increase interest rates while oil continues to drop, so with most analysts forecasting that there could be further losses to come for crude, the outlook for Sterling is NEUTRAL TO NEGATIVE.

Negative Outlook for Euro (EUR) on QE Expansion Speculation

The EURO (currency : EUR) remains firmly in the ‘at risk’ category following European Central Bank President Mario Draghi’s recent suggestion that the euroland’s Quantitative Easing programme may be extended in March.

The shared currency has ridden a wave of positivity following last month’s decision by the ECB not to deepen its QE programme, bolstered by a robust defense of asset purchasing by Draghi. However, most analysts feel that the positive benefit of this action for the euro has now almost run its course. The outlook for the single currency is NEGATIVE and the GBP EUR exchange rate stands at 1.3202.

US Dollar (USD) Outlook Neutral on Potential Federal Reserve Rate Hike Delays

The US DOLLAR (currency : USD) has put in a strong performance against the other major global currencies since the Federal Reserve increased its benchmark interest rate during the middle part of last month. Expectations of another near-term American rate hike have slumped during the intervening period and futures markets now predict that it will be November before the Fed further tightens its monetary policy.

The GBP USD exchange rate stands at 1.4324 and the Buck is expected to trade on a NEUTRAL footing moving forward.

Swiss Franc (CHF) Outlook Neutral to Negative after Weaker-than-Expected Trade Balance

A disappointing set of local trade numbers, out yesterday morning, ensured that the SWISS FRANC (currency : CHF) struggled in the markets on the day.

Investors had been anticipating a print of CHF2.90bn from the December Trade Balance figure; the result of 2.54bn therefore held back the Franc. The Swiss unit is forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward and the GBP CHF stands at 1.4575.

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TAGS: American Dollar Forecasts Euro Forecasts Pound Sterling Forecasts Swiss Franc Forecasts