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

3 May 2011 at 5 PM - Written by John Cameron

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

POUND STERLING

The Pound suffered a torrid day on the markets, losing significant ground against all of the sixteen most actively traded currencies. The losses were attributable to worse-than-anticipated PMI Manufacturing figures which were released earlier today. It seems highly unlikely that there will be a UK interest rate rise until the autumn at least. NEAR-TERM OUTLOOK – NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6534

This afternoon’s US Factory Orders number for March came out much better than had been expected, raising hopes that the US will ‘manufacture’ it’s way to a recovery. However, the Greenback remains susceptible to a continued pick up in risk sentiment. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1116

this morning’s Eurozone Producer Price Index showed an annualised rise of 6.7% in input prices for Eurozone manufacturers. The figure shows that overheating prices remain a considerable concern for the ECB and a hawkish outlook on inflation is expected to continue in coming months. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5146

The Reserve Bank of Australia announced overnight that it will maintain interest rates at their current level of 4.75%. This was largely expected by the markets, however the tone of the RBA’s accompanying statement sent out mixed messages, with the central bank noting that some recent data releases had been of a soft nature, but calling for ongoing vigilance regarding upcoming releases. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0544

The New Zealand Dollar’s performance again mirrored that of its Australian sister currency during today’s session. Last night’s worse than expected hourly earnings figures have not helped the Kiwi’s future prospects and if tomorrow night’s employment figures also disappoint, then the Kiwi’s recent bull-run may be reversed. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5681

The Canadian Dollar finished the day up against most of the majors following the release of election results which showed that the Conservative party won a parliamentary majority. The markets abhor a political vacuum, so the result is likely to be CAD positive, however gains may be pared by a drop-off in crude oil prices. NEAR-TERM OUTLOOK – NEUTRAL.

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