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

5 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 Bank of England voted to maintain interest rates at their current record low level of 0.50% and decided not to increase the £200bn already allocated to its current asset purchase scheme. This morning’s disappointing UK PMI Services figure failed to stop the Pound gaining significant ground against the Euro and the Dollar. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6432

The Dollar has made up much of the ground that it has lost over the previous week against the Pound and the Euro during today’s session. A drop in global appetite for risk which started during yesterday’s session, has continued today with global equities market experiencing selling pressure. Poor Australian retail sales figures and alarmingly bad German production data over the last 24 hours have fuelled the move. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1263

Figures released this morning showed that German Factory Order data showed a dramatic drop of 4% in March, leading to some weakness for the Euro. The single currency came under further selling pressure when ECB President Jean Claude Trichet’s post rate announcement press conference was of an uncharacteristically dovish tone. The ECB voted to hold rates at 1.25%. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5438

THE Aussie has suffered losses against the majors during today’s session, following the overnight release of Retail Sales figures which showed that Australian shop sales shrank in March against analysts’ expectations of an increase. The Australian Dollar has suffered further downside due to the generally soft tone of global data releases this week which has led to a dip in appetite for risk. NEAR-TERM OUTLOOK – NEUTRAL.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0865

The Kiwi more than held its own against the other majors on the day following better-than-expected employment figures which were released during last night’s Asian session. The New Zealand Dollar has avoided the weakening effect of today’s dip in risk sentiment that has hurt its Australian counterpart due to NZ’s relatively lower interest rates. NEAR-TERM OUTLOOK – NEUTRAL.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5870

The Canadian Dollar has lost further ground during today’s session following a large drop in the closely-watched April Ivey PMI Survey. Oil and commodities have also suffered on the day, adding to selling pressure on the CAD. Tomorrow’s Canadian employment figures and US Non-Farm Payrolls will be key. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.

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