Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, NZD, CAD

14 Apr 2011 at 4 PM - Written by John Cameron

STORY LINK Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, NZD, CAD

POUND STERLING

Last night’s Nationwide Consumer Confidence Survey results for March came out significantly better than expected. This, along with yesterday’s better than expected employment figures, has seen the Pound trade higher against the majors today. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6339

The Dollar suffered a weak day on the currency markets today. Annualised Producer Price data cane in lower than expected; ordinarily this would cause analysts to downgrade interest rate expectations. However, projections for US monetary policy are so dovish that this is not possible. Chinese inflation and growth data released overnight could see further downside for the Greenback, if better-than-anticipated. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1304

The Euro came under some spending pressure during today’s session following comments from the Irish Central Bank which suggested that the Eurozone sovereign debt crisis could, ‘intensify and become more widespread’. Tomorrow’s Eurozone inflation figures will provide further direction. NEAR-TERM OUTLOOK – NEUTRAL.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5532

Chinese figures released during last night’s Asian session showed that new loans denominated in Yuans are expanding at a faster-than-anticipated rate. This is good news for Australia, as China is a major market for Aussie exports. The Australian Dollar needs a pick-up in appetite for risk for a further push forward. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0643

The back half of the week has been a quiet period for Kiwi data releases. In the absence of any major risk events, the Kiwi has suffered from drift following its recovery after the Christchurch earthquake. As with its Australian sister currency, the Kiwi may start its next move when Chinese growth and inflation figures are released overnight. NEAR-TERM OUTLOOK – NEUTRAL.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5733

The Canadian Dollar has lost ground against the other measures today following a cooling-off in crude oil prices. Canadian Manufacturing Sales figures released this afternoon showed a worse-than-expected contraction, providing further concerns. It is possible that the CAD has gone as far as it is going to for the moment. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.

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