The spot pound euro exchange rate is at 1.1444. The spot euro pound exchange rate is 0.8739. The spot pound dollar exchange rate is 1.6489. This morning exchange rate analysts at Barcalys Capital have released their forecasts for the British Pound. Please see the exchange rate forecasts table here. With regards to the pound dollar exchange rate is forecasted to fall to 1.62 in the near term, however in one years time the exchange rate is called at 1.67. The euro pound exchange rate is called at 0.88 in one month time, the pound is expected to lose ground further out though with the exchange rate at 0.9 in one years time. Barclays Capital have recommended those with exposure to the exchange rate markets keep risk low rather than chasing excess returns, which analyst do believe are present in the foreign exchange markets. Analysts say: "Given that EFSF funding has still to be approved by the euro area constituent countries, and we anticipate leading US economic indicators releases to soon bring news, we expect the trading environment to remain volatile and, hence, we still favour the JPY (supported by the earthquake recovery) and the USD. "As we think the EUR and CHF face downside and intervention risks, respectively, we would avoid these currencies for now. We note that, while JPY also faces intervention risks, valuation and Japan’s relatively resilient domestic equity market favours JPY over CHF."

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