Currency News

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Exchange Rates Outlook - Euro, Pound Sterling, Swiss Franc & US Dollar Exchange Rates

July 23, 2014 - Written by John Cameron

Currency News UK brings you the latest exchange rate forecasts for the Euro, Pound Sterling, Swiss Franc & US Dollar - The EURO (currency:EUR) once gain market underperformed during yesterday’s session as investors began to eye the start of the European Central Bank’s Long Term Re-financing Operations which kick off with a major debt auction in September. The move out of euro-denominated assets sent GBP EUR to a fresh near-term high and EUR USD down to an 8-month low. This afternoon’s whole of eurozone Consumer Confidence survey could prove market-moving in the wrong way for the single currency given the negative indicators emerging from the euroland during recent months. Analysts forecast that the single currency will trade with a NEGATIVE bias moving forward and the GBP EUR exchange rate stands at 1.2672.

A higher than anticipated level of June UK public sector net borrowing figures, published yesterday morning, were not enough to knock the POUND STERLING (currency:GBP) off its current upward trajectory. Official government figures revealing that the number of UK property transactions hit their highest level since the start of the financial crisis in 2007 helped the Pound, as did ongoing expectations that the Bank of England may be the first major global central bank to increase its interest rate. The forecast for Sterling is now NEUTRAL TO POSITIVE.

The SWISS FRANC (currency:CHF) suffered a double blow during yesterday’s trading session; the Swiss National Bank’s dogged maintenance of a minimum floor of 1.2000 on the EUR CHF exchange rate meant that the Franc continued to suffer alongside a weak euro. Meanwhile, yesterday morning’s highly disappointing Swiss Trade Balance data for last month, which printed at CHF1.38bn versus an expected CHF2.78bn, suggested that the SNB’s policy of a weaker local currency piled the pressure on Switzerland’s unit. The Franc is expected to trade on a NEGTIVE footing moving forward and the GBP CHF exchange rate stands at 1.5395.

GBP/CHF Update 24/07/2014



The Swiss Franc edged higher against the Pound on Thursday as demand for safer havens increased following the shooting down of two Ukrainian jet fighters by pro-Russian separatists. The action raised fears that the European Union could announce harsher sanctions against Russia as a result. The Franc was also finding support from a firmer Euro. The single currency increased on better than expected PMI data out of Germany and the wider Eurozone.

The US DOLLAR (currency:USD) received a fillip during yesterday afternoon’s session when the latest inflation numbers from the States revealed that the rate of domestic price rises remained at above 2.0% last month. Little in the way of significant American data releases today means that the Buck is left to trade to technical channels. However, tomorrow afternoon’s weekly US jobs data and New Home Sales numbers are likely to alter investor sentiment towards the Greenback. With many analysts now suggesting that the Buck has bottomed out against the Pound, the outlook for the US tender is now NEUTRAL TO POSITIVE. The GBP USD exchange rate stands at 1.7060.
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