GBP to EUR Rate Forecast for 1.33 in 2015 According to TD Securities Analysis

Indeed, the move higher appears to be on course at the time of writing, "with the threat of stagnation in Europe’s largest economy, and the European Central Bank mulling over further monetary stimulus in the Eurozone, sterling pushed close to a 5-year high against the euro," says Carl Hasty at Smart Currency Business.

At the time of this article's last update the pound to euro exchange rate (GBP/EUR) is seen at 1.2812 at the weekend.

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The Euro: Watch Troubles in the Euro Dollar

The euro dollar exchange rate (EUR/USD) may be dragging the euro pound exchange rate (EUR/GBP) lower at the present time.

"The selling in the EUR/USD accelerated after it broke below the key 1.2750 level which has served as support four times previously over the past year and a half," says analyst Boris Schlossberg at BK Asset Management alluding to the breaking of a key support level.

The euro has proven to be very resistant to Eurozone data releases and it is for this reason we suspect that future will be dependent on events concerning the US economy and the European Central Bank.

That is why events in the first week of October will be key to future euro direction.

The British Pound: How High Can it Advance?

We present a number of interesting viewpoints in a recent article on where the GBP/EUR exchange rate is likely to head with some analysts saying 1.37 could even be achieved.

Adding to the positive stance are TD Securities who today tell us that while the longer-term picture favours the pound the near-term could produce a bounce:

"With Scotland's independence referendum out of the way, the GBP will refocus on domestic fundamental economic strength and the outlook for BoE policy in the months ahead.

"We think the BoE is likely to start tightening policy early in 2015, which will underpin the GBP overall in the coming year. We target EURGBP at 0.75 (GBP/EUR @ 1.33) by mid-2015 and would favour fading short-term gains in the cross towards the 0.79 (1.2658) area."

Further losses are also forecast against the US dollar with 2015 predicted to be a bad year for EUR/USD in the opinion of TD:

"We remain bearish on the EUR outlook as a consequence. We continue to target 1.29 by year end. Considering the risks of a short-term correction in the USD rally that we perceive currently, we are reluctant to adjust our USD forecasts at this point. But we expect EURUSD losses to extend to- wards 1.22 through the end of 2015."