Exchange Rate Outlook Forecast for Majors : GBP USD EUR JPY AUD NZD

10 Mar 2011 at 4 PM - Written by John Cameron

STORY LINK Exchange Rate Outlook Forecast for Majors : GBP USD EUR JPY AUD NZD

POUND STERLING

The Pound has suffered a poor day on the markets. The BoE chose to maintain rates at 0.50% earlier today, causing selling pressure on Sterling as futures markets had factored in a minority chance of a rate rise. Positive manufacturing data was unable to prop up the Pound. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR - The Pound Dollar exchange rate (GBP/USD) is 1.6062

The Dollar has powered forwards against all of the 16 most-traded currencies today as share markets have suffered significant losses. Gaddaffi loyalists have launched a concerted assault on a Libyan oil installation and fears persist that all is not well with Eurozone nations’ sovereign debts. Both factors have caused a flight to safety, benefitting the Dollar. NEAR-TERM OUTLOOK – POSITIVE.


EURO - The Pound Euro exchange rate (GBP/EUR) is 1.1623

The Euro has given up a lot of ground on the day against the majors and its rejection of the 1.4000 level against the Dollar now looks highly significant. The EUR/USD rate traded down into the 1.37s today. Fears over Eurozone debts have weighed down the Euro, as market focus moves away from the likely rate April hike, which is now factored in as a near-ceratinty. NEAR-TERM OUTLOOK – NEGATIVE.


JAPANESE YEN - The Pound Yen exchange rate (GBP/JPY) is 133.30

The Yen has powered forward in tandem with the US Dollar in today’s European session, gaining over 0.50% against GBP. Asian stocks suffered heavy losses due to disappointing Chinese trade figures and fears over an escalation of the Arab uprising, causing a move into the safe haven Yen. NEAR-TERM OUTLOOK – POSITIVE.


AUSTRALIAN DOLLAR - The Pound Australian Dollar exchange rate (GBP/AUD) is 1.6036

The Aussie Dollar has given up a little ground in the markets today as institutional investors shifted funds out of the high-yielders on a dip in appetite for risk. Australian employment figures, released overnight, were on balance worse than anticipated, causing further downside for the Australian Dollar. NEAR-TERM OUTLOOK – NEGATIVE.


NEW ZEALAND DOLLAR - The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.1835

The Reserve Bank of New Zealand opted to cut interest rates by 0.50% last night. Surprisingly, this failed to weaken the Kiwi Dollar significantly, due to the fact that New Zealand policy-makers had widely touted the cut in the press. The feeling pervades that all of the bad news for the NZD is now factored in and more stable trading lies ahead. NEAR-TERM OUTLOOK – NEUTRAL.

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