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

26 Apr 2011 at 5 PM - Written by John Cameron

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

POUND STERLING

Sterling’s slide continued during today’s session following a worse-than-anticipated CBI Business Optimism survey, which was released this morning. Tomorrow’s Q1 GDP Growth figure will be very closely watched with a quarterly growth figure of above 0.5% required to reverse the Pound’s recent bear-run. NEAR-TERM OUTLOOK – NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6474

This afternoon’s US Consumer Confidence survey provided a fillip for the Dollar, coming in higher than expected. This followed on from yesterday’s encouraging housing sector data, leading analysts to suggest that the Dollar may now re-trace from its recent lows against the Pound and the Euro. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1256

The Euro has once again gained ground against the Dollar and Sterling during today’s session in spite of widening debt spreads on Spanish and Greek debt. Bullish interest rate expectations are supporting the single currency, but it is questionable how long this situation will persist, particularly in light of ECB President Jean Claude Trichet’s recent comments which were of an uncharacteristically dovish tone. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5279

Australian analysts today predicted that the domestic economy is in for a renewed bout of inflationary pressures during the latter half of 2011. These predictions are informing investors’ expectations on the future direction of the RBA’s monetary policy, with a rate hike expected sooner rather than later. NEAR-TERM OUTLOOK – POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0458

The New Zealand Dollar rose to a new three year high against its US counterpart during today’s session, fuelling hopes of a continued rally. Tomorrow night’s RBNZ interest rate decision is expected to maintain the current lending rate at 2.50%, so any surprise hike would be massively supportive for the Kiwi. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5655

The Canadian Dollar continued to pick up ground on the day as positive earnings figures from US companies took the S&P 500 index higher, buoying the prospects of stronger demand in Canada’s major trading partner. With commodities continuing to push to new highs, the future looks rosy for the CAD. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVIVE.

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