CURRENCY NEWS Foreign Exchange Predictions - GBP USD EUR AUD NZD CAD

1 Apr 2011 at 5 PM - Written by John Cameron

STORY LINK CURRENCY NEWS Foreign Exchange Predictions - GBP USD EUR AUD NZD CAD

POUND STERLING

This morning’s Purchasing Manager’s Index figure for March heaped further pressure on the already-beleaguered Pound when it came in significantly worse than February’s equivalent number and much lower than analysts had expected. In the absence of any further risk events, the Pound was left to range-trade ahead of next week’s busy data schedule. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6117

This afternoon’s Non-Farm Payrolls figure far exceeded expectations, showing 216,000 new jobs were created in the Non-Farm sector last month. On a less positive note for the US real economy, US factory orders fell for the first time in four months. However, the drop was not dramatic. Another Federal Reserve member has called for the US QE programme to end in June. The net effect of these events was moderate Dollar weakness due to improved risk appetite. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1345

This morning’s Eurozone Purchasing Managers Index figure came out slightly below expectations, but not by enough to significantly harm the Euro. The single currency traded within a tight range against the majors today as investors prepared themselves for next week’s key events. The most prominent of these events is the ECB’s interest rate decision on Thursday. If market rumours of a 50bps hike gain momentum in the interim, the Euro could break to new near-term highs against both Sterling and the Dollar. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5524

The Aussie looks to have reached a level of some resistance against the majors following its recent bull-run. The highly positive labour market data released in the States this afternoon should help risk sentiment when the Asian markets re-open on Sunday night UK time, providing further potential for upside for the Australian Dollar. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.1036

With no tier one data releases in New Zealand today, the Kiwi failed to break to new highs against the major currencies. Many analysts have noted that the Kiwi has come a long way in a short space of time and the fundamentals look far from rosy for the heavily indebted nation. For technical reasons, a move away from recent highs can not be ruled out for next week for the New Zealand Dollar. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5531

The price of a barrel of crude broke higher today and is now approaching the 30 month high which it reached at the height of the Arab Uprising. This has caused the CAD to gain some ground against the majors. This afternoon’s highly positive US Non-Farm Payrolls figure also benefited the CAD, due to the US’s position as the number one destination for Canadian Oil exports. There could yet be enough oil in the Canadian Dollar’s tank to see it strengthen further in coming sessions. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVIVE.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Canadian Dollar Forecasts Currency Predictions Euro Forecasts New Zealand Dollar Forecasts Pound Australian Dollar Forecasts Pound Canadian Dollar Forecasts Pound Dollar Forecasts Pound Euro Forecasts Pound New Zealand Dollar Forecasts Pound Sterling Forecasts