British Pound GBP Currency Outlook Versus EUR USD CHF - Current Forecasts Positive

July 13, 2016 - Written by James Fuller

STORY LINK British Pound GBP Currency Outlook Versus EUR USD CHF - Current Forecasts Positive

For now, at least, the Pound seems set to remain a dominant force against its peers, on account of the Bank of England (BoE) not cutting the UK interest rate.

The Pound may be in for a drop shortly, if the Bank of England (BoE) cuts the UK interest rate.

Pound Sterling (GBP) Exchange Rates Boosted by Theresa May PM News

The POUND STERLING (currency : GBP) enjoyed an early-week boost after the shorter than anticipated search for a new United Kingdom Prime Minster saw the coronation of Theresa May. However, the second half of this week’s session may see support for the Pound ease if, as expected, the Bank of England cuts its benchmark interest rate to a fresh all-time low. The outlook for Sterling remains NEUTRAL TO NEGATIVE.

GBP/EUR Currency Forecast Neutral/Negative With BoE Meeting Ahead

The EURO (currency : EUR) endured a choppy trading session yesterday after the publication a downbeat report from the International Monetary Fund (IMF) forecasting ongoing difficulties for Italy’s retail banks and the Italian economy in general. The shared currency has recorded sustained gains against Sterling since the UK Brexit vote, but with the ECB’s large scale Quantitative Easing programme continuing in the background, the shared currency is forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward. The GBP EUR exchange rate stands at 1.1955.

US Dollar Loses 2% Vs Pound Sterling, Are Further Gains Forecast?

The US DOLLAR (currency : USD) shed almost 2% of its value against the Pound Sterling yesterday as investors continued to price-in a decreased perceived likelihood that the US Federal Reserve will be hiking its benchmark interest rate before the end of the year. Futures markets currently price-in a 63% chance that the US central bank will maintain the local cost of borrowing at or below its current level through to the end of the year. The Buck is therefore expected to trade with a NEUTRAL TO NEGATIVE bias moving forward. The GBP USD exchange rate stands at 1.3243.

Neutral/Negative Outlook Projected for GBP/CHF Exchange Rates

The safe-haven SWISS FRANC (currency : CHF) was hammered in the global currency market yesterday as investors continued to recover their nerve following the UK’s vote to leave the European Union last month. Frankfurt’s Dax closed up by 1.33%, France’s Cac 40 gained 1.57% on the day and Madrid’s IBEX jumped by some 2.42% as investors regained their appetite for risk. Further upward movement for equities would weigh on the Swiss Franc, which is now forecast to trade on a NEUTRAL TO NEGATIVE footing in the short term. The GBP CHF exchange rate stands at 1.3068.

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TAGS: Daily Currency Updates Dollar Pound Forecasts Euro Pound Forecasts Forecasts