Multi-currency exchange rate forecasts for the British Pound (GBP), US Dollar (USD) and the Euro (EUR) exchange rates today
The Pound Sterling, Euro and Dollar currency pairs are unlikely to move dramatically in the second half of next week as markets close and domestic data is thin on the ground over the Christmas period.
However, currencies may see some movement in the run-up to Christmas.
A quick FX market summary before we bring you the rest of the report:
On Friday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.861
At time of writing the pound to euro exchange rate is quoted at 1.161.
FX markets see the pound vs south african rand exchange rate converting at 23.617.
FX markets see the pound vs indian rupee exchange rate converting at 103.21.
The live inter-bank GBP-USD spot rate is quoted as 1.238 today.
Please note: the FX rates above, updated 19th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
Pound Sterling to Dollar Exchange Rate Forecast
Monday will see the release of Eurozone Consumer Confidence stats which decreased to a nine-month low in November at -11.6. Economist Howard Archer stated: ‘Despite dipping to a nine-month low in November, the European Commission’s Consumer Confidence index is still modestly above its long-term average, although the situation does vary markedly between countries.’
Meanwhile, the US Chicago Federal Reserve National Activity Index will also be out which resided at 0.14 in October. Moreover, Existing Home Sales which reached 5.26M in October, is also scheduled for publication. The December Existing Home Sales figure rose by 1.5% in November. Tuesday will see the release of US Durable Goods Orders as well as Annualised Gross Domestic Product figures.
Pound to Euro Exchange Rate Forecast: GBP/EUR Movement on French GDP
Tuesday could be another interesting day for Euro trading with the final publication of French Gross Domestic Product (GDP) figures which showed 0.4% growth in the second quarter on the year. UK BBA Loans for Home Sales ecostats will also emerge on Tuesday followed by final UK Gross Domestic Product numbers which will be the last UK publication of the week.
On the year, GDP is expected to reside at 3.0% in quarter three.
Oil Price Fluctuations Could Impact GBP to USD and EUR Rates
In the last week, UK inflation fell due to tumbling oil prices and any developments in commodity values or central bank activity could move the GBP/EUR and GBP/USD currency pairs.
Recently, the Bank of England (BoE) took steps toward offering greater transparency to the public. At present, any Monetary Policy Committee (MPC) meetings that take place have any evidence destroyed. In the coming future, the meetings will have their full transcripts published eight years after the summit takes place. Furthermore, the central bank will begin cutting its meetings down to only eight a year from the current 12. The bank will also publish minutes on the day of the interest rate decision instead of waiting weeks.
January 2015 and Euro Zone QE
Meanwhile, as we head into January many economists expect the European Central Bank (ECB) to take more aggressive action to stimulate growth in the Eurozone.
After other half-hearted attempts to revive expansion in the 18-nation Euro area have failed, many economists believe that a period of full-blown quantitative easing (QE) is on the cards.
When the central bank meets in January it has vowed to discuss monetary policy.
Update GBP/USD 23/12/2014: The Pound to Dollar rate softened on Tuesday following the release of disappointing UK GDP and current account data and is forecast to weaken further on expectations that US GDP data will come in strongly.
Update GBP/EUR 23/12/2014: The Pound to Euro rate lost ground on Tuesday after the UK released final third quarter growth figures. While the quarterly figure for the 3 months through September was left unrevised at 0.7 per cent, the pace of annual expansion was reduced from 3.0% to 2.6%.