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

12 May 2011 at 3 PM - Written by John Cameron

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

POUND STERLING

Sterling endured its first day of losses this week following a significantly weaker than anticipated monthly Industrial Production figure for March, which was released this morning. With no further UK data releases due out until next week, the Pound will be left to trade in technical ranges against the other majors. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6288

This afternoon’s closely-watched US Retail Sales figures came in slightly worse than analysts had expected. However, the disappointing shop sales numbers were off-set by April’s Producer Price Index figures which show that factory gate prices are accelerating in the world’s largest economy. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1470

This morning’s ECB Monthly Report maintained the central bank’s more moderate tone on monetary policy of recent times. The report stated that the ECB will be closely monitoring Eurozone fundamentals, suggesting that its focus is changing form controlling price rises to promoting growth. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5307

Last night’s Employment figure showed that there was an unexpected drop in the number of Australians who are actively employed last month. Combined with extreme volatility in global commodities markets, this figure may see the Aussie come under some selling pressure over the remainder of the week. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0565

The New Zealand Dollar has fared worse than its Australian sister currency on the day as market-participants continue to adjust their Kiwi positions following the IMF’s report of earlier this week which stated that the Kiwi is overvalued in the markets. Tonight’s NZ Quarterly Retail Sales figure is the next risk event of note for the Kiwi. NEAR-TERM OUTLOOK – NEAGTIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP/CHF) is 1.4431

The Swissy has mirrored US Dollar movements throughout the day, gaining around 0.5% against Sterling on the day. This suggests that market participants are feeling jittery about a potential collapse in appetite for risk following recent volatility in commodities markets. NEAR-TERM OUTLOOK – NEGATIVE.

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