Latest Exchange Rate Predictions Today - GBP, USD, EUR, AED, SGD, JPY

Published: Wednesday, 9 March 2011 17:10 BST - Written by John Cameron

STORY LINK Latest Exchange Rate Predictions Today - GBP, USD, EUR, AED, SGD, JPY

POUND STERLING

UK trade figures released earlier today outstripped analysts’ expectations, providing a much needed fillip for the Pound. Tomorrow’s Band of England interest rate decision is key. Futures markets have factored in a 15% chance of a rate rise, so if the BoE maintain rates at 0.5%, some downside for is to be expected for Sterling. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR

The Pound Dollar exchange rate (GBP/USD) is 1.6209

The Arab crisis continues to affect the USD, with equities markets struggling to move forward during today’s session, appetite for risk looks to be waning again, causing the Dollar to give up some of yesterday’s gains. GBP/USD traded to within a cent of its 13 month high earlier today. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO

The Pound Euro exchange rate (GBP/EUR) is 1.1664


Better-than-anticipated January industrial production figures from Europe’s economic powerhouse, Germany, have provided some optimism for investors holding Euros. All bets are off for the Euro until Friday’s ECB Emergency Debt Summit, with analysts expecting Germany to prove reluctant to commit to future bail-outs for debt-addled Eurozone states. NEAR-TERM OUTLOOK – NEUTRAL.


ARAB EMIRATES DIRHAM

The Pound Dirham exchange rate (GBP/AED) is 5.9545

The Dirham remains pegged to the US Dollar, so any movements in the Dollar are mirrored by the Dirham. This means that the Dirham remains susceptible to swings in risk sentiment. With little hope of the US Federal Reserve tightening monetary policy in the foreseeable future, further downside for the Dirham is possible. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


SINGAPORE DOLLAR

The Pound Singapore Dollar exchange rate (GBP/SGD) is 2.0555

It looks like the uptrend which took the GBP/SGD rate from below 2.00 at the start of January to trade above 2.07 may be running out of steam. Singapore’s central bank announced overnight that it expected growth in the city state to run at a healthy 5.7% against UK expectations off below 2% growth. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


JAPANESE YEN

The Pound Japanese Yen exchange rate (GBP/JPY) is 134.18

The Yen suffered some significant downside pressure in the early part of the week as stock markets improved. With ultra-low interest rates running at 0.10%, the Yen continues to act as a funding currency, leaving it susceptible to selling pressure due to carry trades. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.

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TAGS: American Dollar Forecasts Currency Predictions Euro Forecasts Japan Forecasts