Pound Sterling (GBP) Exchange Rate Forecast
The Pound put on a patchy performance on Tuesday thanks to conflicting economic reports for the UK.
While UK house price growth slowed and consumer confidence waned, the nation’s second quarter GDP was revised from 0.8% to 0.9%, prompting this response from economist David Kern; ‘Overall, these figures are positive – they show an upward revision in quarterly growth in the second quarter and growth in business investment. The current level of GDP is considerably higher than its pre-recession level, which mirrors our view that earlier official estimates have understated growth in recent years. However, there are concerning features in the latest figures – the volume of exports has fallen slightly and the current account deficit has widened to above 5% of GDP, a level which in the long term will prove to be unsustainable.’
The data, in conjunction with some disappointing economic reports for the Eurozone, helped the Pound advance by more than 0.4% against the Euro and trend in a stronger position against the Canadian Dollar.
However, the British currency was a little weaker against the US Dollar.
The only UK report to be aware of today is the nation’s Manufacturing PMI. Although the index is expected to have risen from 52.5 to 52.7 in September, an unexpected shift could have repercussions for the Pound Sterling exchange rate.
Swiss Franc (CHF) Exchange Rate Forecast
On Tuesday the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate achieved a high of 1.5530 as the British currency gained by 0.4%.
There were several reasons for Sterling’s charge against the Franc, including the UK’s upwardly revised second quarter growth data and the slight softening in the Swiss KOF Leading Indicator gauge.
According to KOF; ‘The KOF Economic Barometer decreased by half a point in September 2014. With a reading of 99.1 (from a revised 99.6 in the previous month) it stays for the third month in a row slightly below its long-term average. Regardless the Barometer’s decrease, with a reading close to its long-run average, perspectives for the Swiss economy remain relatively stable.’
The US Dollar to Swiss Franc (USD/CHF) exchange rate advanced to a high of 0.9596 in spite of a steeper-than-forecast drop in US Consumer Confidence.
The Swiss Franc could experience movement later today following the publication of Switzerland’s SVME Manufacturing PMI. The gauge of manufacturing is expected to have fallen from 52.9 to 51.9 and a disappointing result may cause Swiss Franc losses.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate fell to a low of 1.5434
