July 6, 2016 - Written by John Cameron
STORY LINK Jim Rogers Forecasts Below Parity for GBP USD Exchange Rate in Future
The Pound managed to hit a peak against peers around midday today, but has since dropped off due to overwhelming overall negativity.
GBP USD Exchange Rate Strikes Fresh 31-Year Low
The Pound Sterling (currency : GBP) has struck yet another 31-year low versus the US Dollar (currency : USD) during today’s session. The GBP USD exchange rate slumped to 1.2791 GBP USD a little earlier as investors continued to shift out of Sterling-denominated assets following last night’s heavy selling pressure on the Pound during the Asian trading session.
The move out of Sterling-denominated assets was partly driven by comments from legendary investor Jim Rogers. Rogers has become known as something of a futurologist and famously predicted in 2012 that, ‘there's going to be a huge shift in American society, American culture, in the places where one is going to get rich. The stock brokers are going to be driving taxis. The smart ones will learn to drive tractors so they can work for the smart farmers. The farmers are going to be driving Lamborghinis. I’m telling you.’
Rogers may be sweet on the future prospects of America’s farmers, but he does not forecast a positive performance from the Pound Sterling during coming months. Rogers commented earlier today that the GBP USD exchange rate, ‘is going to go down a lot,’ before issuing the stunning forecast that, ‘it is going to go well below a Dollar. Not this year, but before this is over.’ His final advice for investors holding the Pound was that – ‘You should be very worried.’
US Labour Market Data Forecast to Provoke GBP USD Exchange Rate Volatility
Meanwhile, investors hoping for a bounce in the Pound Dollar exchange rate will be nervously eyeballing Friday’s US labour market statistics.
The key Non-Farm Payrolls data for June is highly likely to be market-moving following May’s dismal showing of 38,000. Another poor result from this major data set, in combination with last month’s vote to leave the European Union from the British electorate, would skittle any hope of a US interest rate hike this side of Christmas.
Such an outcome would be likely to send the US Dollar into reverse against the Pound, as well as the remainder of the other sixteen most actively traded global currencies.
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TAGS: American Dollar Forecasts Pound Dollar Forecasts Pound Sterling Forecasts