Exchange rates; 28th May 2012
The US dollar’s safe haven status has helped push its exchange rate higher over the past month. I see safe-haven demand helping it appreciate further across the board.
End of week forecast
GBP / EUR 1.26
GBP / USD 1.5750
EUR / USD 1.25
GBP / AUD 1.6050
Sterling/EUR exchange rate is trading up above €1.25 this afternoon, however, sterling’s safe-haven status still looks likely to push it even higher against the euro.
In contrast, sterling is always going to be under pressure against the US dollar. An exchange rate anywhere close to $1.60 looks unlikely now. Risk appetite away from the US dollar is likely to be hard-pushed to return in force ahead of the June 17th Greek elections.
For my previous weekly update on Sterling exchange rates click here.
Category: Currency news