How businesses use currency forecasts

Businesses with international payment requirements need to be able to budget for these in advance. However, currency volatility and market uncertainty mean that it is impossible to predict currency exchange rates with precision.

Knowing when to buy or sell currency can be tricky, and companies often can’t tell in advance what exactly their future currency requirements will be. That makes it difficult to estimate costs and income in various currencies, and poses a challenge when budgeting.

It is still possible to estimate future currency exchange rates, though, based on a set of criteria, including historical knowledge, current market conditions and known upcoming events.

Knowing if currency markets are likely to move in or against their favour will also help businesses decide if they need to put hedging strategies in place.

What do you get in our quarterly forecast reports?

Our free reports cover three major currency pairs: GBP/EUR, GBP/USD and EUR/USD. In each, you’ll find:

• A summary of the economic events that happened in the last quarter both for currencies
• Actual currency exchange rates from the past quarter
• Economic and political events in the upcoming quarter which could affect currency performance
• Forecast currency exchange rates for the upcoming quarter
• Minimum and maximum forecast rate comparisons – how much you could gain or lose

Download this quarter’s currency exchange forecasts here