MENU

Pound-Euro Exchange Rate Week Ahead Forecast: Back from Brink, but Overtaken by GBP/USD

Pound-Euro Exchange Rate Week Ahead Forecast: Back from Brink, but Overtaken by GBP/USD


The Pound-to-Euro exchange rate could be lifted by a dissipation of domestic political risks this week but gains may be slower to materialise than in the past, leading GBP/USD to outperform GBP/EUR during the weeks ahead in the absence of…


Cryptocurrency Live Prices in Pounds, Euros and Dollars

Currency Change 24h Price (GBP) Price (EUR) Price (USD)
Dogecoin DOGE -33.17%

Dogecoin price in Pounds

0.3404 View Data

Dogecoin price in Euros

0.3914 View Data

Dogecoin price in Dollars

0.4761 View Data
Buy Now
Bitcoin BTC -2.34%

Bitcoin price in Pounds

41183.6067 View Data

Bitcoin price in Euros

47364.7 View Data

Bitcoin price in Dollars

57604.9481 View Data
Buy Now
Ethereum ETH +5.29%

Ethereum price in Pounds

2746.5244 View Data

Ethereum price in Euros

3158.74 View Data

Ethereum price in Dollars

3841.6596 View Data
Buy Now
Tether USDT +0.35%

Tether price in Pounds

0.7188 View Data

Tether price in Euros

0.8267 View Data

Tether price in Dollars

1.0054 View Data
Buy Now
Ripple XRP -5.29%

Ripple price in Pounds

1.0771 View Data

Ripple price in Euros

1.2388 View Data

Ripple price in Dollars

1.5066 View Data
Buy Now
Litecoin LTC +3.51%

Litecoin price in Pounds

254.1375 View Data

Litecoin price in Euros

292.28 View Data

Litecoin price in Dollars

355.4709 View Data
Buy Now
Cardano ADA +11.9%

Cardano price in Pounds

1.29 View Data

Cardano price in Euros

1.4836 View Data

Cardano price in Dollars

1.8043 View Data
Buy Now
Polkadot DOT -1.62%

Polkadot price in Pounds

28.0849 View Data

Polkadot price in Euros

32.3 View Data

Polkadot price in Dollars

39.2833 View Data
Buy Now
Enjin ENJ -3.88%

Enjin price in Pounds

1.7256 View Data

Enjin price in Euros

1.9846 View Data

Enjin price in Dollars

2.4136 View Data
Buy Now
Bitcoin Cash BCH -4.88%

Bitcoin Cash price in Pounds

950.4331 View Data

Bitcoin Cash price in Euros

1093.08 View Data

Bitcoin Cash price in Dollars

1329.4039 View Data
Buy Now
Stellar XLM -4.75%

Stellar price in Pounds

0.4268 View Data

Stellar price in Euros

0.4908 View Data

Stellar price in Dollars

0.5969 View Data
Buy Now
Chainlink LINK +2.45%

Chainlink price in Pounds

35.4974 View Data

Chainlink price in Euros

40.8251 View Data

Chainlink price in Dollars

49.6515 View Data
Buy Now
Aave AAVE -0.79%

Aave price in Pounds

324.1233 View Data

Aave price in Euros

372.7697 View Data

Aave price in Dollars

453.3626 View Data
Buy Now


Pound Sterling Data and Latest News


1 Day
1 Week
1 Month
This Year
Past Year
5 Years
10 Years

vs G10

vs Next 10

Loading

* 1 Week = past 5 trading days, 1 Month = past 20 trading days, This Year = 2021, Past Year = Past 365 Days

Click Here for More GBP Pairs

Click for EUR | USD | AUD | NZD | CAD | JPY | ZAR | SEK | NOK | CHF


Euro Data and Latest News


1 Day
1 Week
1 Month
This Year
Past Year
5 Years
10 Years

vs G10

vs Next 10

Loading

* 1 Week = past 5 trading days, 1 Month = past 20 trading days, This Year = 2021, Past Year = Past 365 Days

Click Here for More EUR Pairs

Click for EUR | USD | AUD | NZD | CAD | JPY | ZAR | SEK | NOK | CHF


U.S. Dollar Data and Latest News


1 Day
1 Week
1 Month
This Year
Past Year
5 Years
10 Years

vs G10

vs Next 10

Loading

* 1 Week = past 5 trading days, 1 Month = past 20 trading days, This Year = 2021, Past Year = Past 365 Days

Click Here for More USD Pairs

Click for GBP | EUR | AUD | NZD | CAD | JPY | ZAR | SEK | NOK | CHF


Effective Exchange Rates

GBPUSD: Pound's Upside Trend Against Dollar Comes Under Pressure

us dollar v pound sterling

The outlook for the British pound to dollar exchange rate (GBP-USD) remains positive say a number of analysts who have just released their latest research on the pair.

However, the calls were issued ahead of a strong USD rally on the back of what appears to be stubborn US inflation data.

While the USD is looking stronger at the present time the recent sterling recovery, discussed here, remains relevant until key technical levels are broken down.

“The Cable has begun to turn bullish in recent weeks and the formation of a bullish channel could provide traders a technical setup to take advantage of it,” says Ross Woodfield at Blackwell Global Investments.

The fundamentals remain supportive - the prospect of a cut in UK interest rates is very unlikely at this stage. Furthermore the Bank of England has remained committed to raising interest rates by early next year.

Meanwhile, we are seeing signs that the US Federal Reserve could be agitating for a push back in timing for their own interest rate hike.

"Despite Fed Chair Yellens best efforts this week to dampen down the markets enthusiasm around dropping “patience” and normalising rates policy, the market was having non of it. Most had inked into their minds a poor inflation print and  wanted to resell rates and buy the USD at better levels," say Lloyds Bank in a note explaining the volatility seen in dollar pound over the past 24 hours.

Where is the Rate Now?

  • Looking at the markets, the pound to dollar exchange rate is trading marginally lower on a day-on-day comparison, 1 GBP = 1.5401.

NOTE: The above quotes and graphic representations are taken off the wholesale markets. Your bank will affix a spread at their discretion when passing on currency. However, an independent FX provider will seek to undercut your bank's offer, thereby delivering up to 5% more currency in some instances. Find out more.

A With-Trend Trade

As we can see from the below graphics, the GBPUSD found the 1.50 level supportive, something we had always been of the opinion would transpire.

Since then, a channel higher has formed:

trend higher in GBPUSD

Ross Woodfield at Blackwell Global Investments says speculative traders are faced with an attractive prospect:

“A less risky trade would be to wait for a touch along the bottom of the channel and enter on the rejection.

“This could coincide with the resistance turned support at 1.5463 and would be a with-trend trade. Further support is found at 1.5341 and 1.5212. An upside continuation of the trend will look for resistance at 1.5617, 1.5749 and 1.5831.”

What the Forecasters are Saying

With an apparent upward trend in place, what are the other levels we should be keeping an eye on in the sterling-dollar rate?

Karen Jones at Commerzbank tells us resistance to the recovery remains a little further ahead:

“GBP/USD has eroded the 23.6% retracement of the move down from July 2014 and the top of the daily cloud – the market has not traded above its cloud since July 2014.

“This suggests some unfinished business on the topside.

“The move above 1.5490 targets initially 1.5618, the end of December high. key resistance is the 1.5855 November 2013 low. We look for the rally to stall ahead of here.”

Lucy Luyet at Swissquote Research tells us where the various supportive levels to the trend lie:

“GBP/USD has broken the resistance at 1.5486, opening the way for a test of the key resistance at 1.5620. Hourly supports can now be found at 1.5468 (intraday low) and 1.5402 (24/02/2015 low, see also the rising trendline).

“In the longer term, the break of the key resistance at 1.5274 (06/01/2015 high) suggests renewed buying interest. Upside potentials are likely given by the resistances at 1.5620 (31/12/2014 high) and 1.5826 (27/11/2014 high).”

“A strong support stands at 1.4814.”

US Dollar Enters Weak Patch

Janet Yellen provided no fresh insight on U.S. monetary policy in day 2 of her testimony on Capitol Hill.  

“As a result, the U.S. dollar continued to trade lower against all of the major currencies,” notes Kathy Lien at BK Asset Management.  

A smaller decline in new home sales did not help the dollar although it is notable that the greenback has held up well against the Japanese Yen compared to other major currencies.  

The biggest loses were seen against the commodity currencies which benefitted from higher oil prices and stronger data from China.

Yellen opted for flexibility over clarity but she also made it clear that rates could rise at any time.

“The recent pullback in the dollar indicates that investors had hoped for more from Yellen but a June rate hike was never realistic. The central bank doesn't want to raise interest rates too quickly because they fear that a premature increase would undermine the recovery and hamper job healing,” says Lien.