Exchange rate outlook: Today's predictions for the British pound, euro, US dollar and Yen

The following currency predictions and insights come courtesy of the technical team at UBS.

NB: All quotes here are taken from the wholesale spot markets; your bank will subtract a spread at their discretion when delivering a retail rate. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering up to 5% more currency. Please learn more here.

Pound dollar exchange rate outlook

"The pair has bounced this week from the critical support at 1.5894, reinforcing the bullish picture. Resistance is at 1.6122 ahead of 1.6260."

Euro dollar exchange rate outlook

"The recent weakness found support at 1.3293 and this level prompted a mini rebound last night. Any further recovery will see resistance at 1.3501."

Dollar Yen outlook

"Initial resistance is at 99.41, a break above which would open 100.61. Support is at 96.94 ahead of 95.81."

Exchange rates: What just happened?

The euro's sell-off over the past 24 hours has been a key driver for FX.

Euro selling was prompted after about 90% of the market was caught unawares when the ECB lowered the main refinancing rate from 0.50% to the fresh historical low of 0.25%.

"EURUSD drilled down the daily cloud cover (1.3375/1.3465), hit 1.3296 for the first time since Sep 13th, rebounded to 1.3450 on short covering and then eased to 1.3389/1.3425 range in Asia. As EUR-bears gain momentum, we remain bearish on EURUSD. Option barriers remain at 1.3450/75. Option bids are seen at 1.3390, stops trail below 1.3375 (daily cloud base). Asian sovereign names are likely to remain bid at 1.3300," says Ipek Ozkardeskaya at Swissquote Research.

Today's outlook sees a busy economic calendar consisting of:

Swiss and Swedish October Unemployment Rates, 

German September Current Account, Trade Balance, Exports and Imports, French September Current Account, Trade Balance, September Industrial and Manufacturing Production,
Swiss September Retail Sales Real y/y,
Swedish September Industrial Production m/m & y/y,
UK September Trade Balance and Construction Output m/m & y/y,
Canadian October Housing Starts, Unemployment Rate and Net Change in Employment,
US October Change in Nonfarm, Private and Manufacturing Payrolls, October Unemployment Rate,
US September Personal Income & Spending, September PCE Deflator m/m & y/y and PCE Core m/m & y/y and University of Michigan November (Prelim) Confidence Index.