Exchange rates forecast: the future of euro, dollar and pound

Forecast exchange rate between the euro

In brief: Forecast exchange rate for the long term remains extremely negative for euro and pound. Dollar exchange rate will be stable.

BNP Paribas expects the euro / dollar at par in 2011. According to analysts, BNP Paribas, in 2011 the euro / dollar falls below parity, and will reach 0.97 by mid-year. In the short term, the bank expects rollback couples from current levels up to 1.2525. Currently, traders note the activity of German investors, who have shown interest in buying the single currency. A pair traded in the 1.2380, recovering from lows at 1.2380. Ofer noted in 1.2416/20. For the British pound have all the fun begins. I went to the countdown in anticipation of the publication of emergency budget planned for next Tuesday.

But now rumors are beginning to appear that will tell us the new finance minister George Osborne. There is no doubt that on the weekend of rumors and assumptions will be in abundance. To pound the event of extraordinary importance. Currency is very sensitive to the problems that may result in the reduction of so dear investors AAA rating. If Osborne evades categorical statements with respect to reducing the deficit, the rating agencies can act on principle and to reduce the country’s rating, which undoubtedly will lead to the collapse of appreciation of the pound. If he overdoes with categorical, the markets will start to worry about re-recession, which also ends up falling pound. However, most likely, Osborne cope with the problem, as it should. His Conservative Party is set to maintain a high credit rating of the country, with recent warnings by the agency Fitch gave him confidence. It may therefore be a major risk factor for the traders would increase a pound next week. Of course, the assumption is pretty bold, especially considering that the country’s public finances are in poor condition.

Igor Tringlers
2010-06-18 12:01, Currency news.

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