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

24 May 2011 at 2 PM - Written by John Cameron

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

POUND STERLING

Sterling came under significant selling pressure in the early part of today’s session after leading rating’s agency Moody’s announced that it was considering downgrading the credit rating of fourteen UK retails banks. The Pound came under further pressure when BoE MPC member Paul Fisher suggested that a UK interest rate increase might be ‘the wrong thing to do right now.’ NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6168

The Dollar softened throughout today’s session, with the EUR USD rate failing to hold below 1.4000. Fears over an imminent meltdown of the European banking system caused by the Eurozone sovereign debt crisis have eased, causing an increase in risk appetite which has caused the Greenback to lose ground. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1461

A slew of largely-positive German data released in the early part of today’s European session helped prop up the Euro. The highlight was the German IFO Business Survey, which considerably outstripped expectations. The spectre of an impending Eurozone Sovereign Debt crisis is keeping ECB interest expectations in check and this is unlikely to change for some time. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5289

The Aussie has enjoyed a day of gains following yesterday’s blip, which has seen the GBP AUD exchange rate touch 1.5250. This level is very close to a 23 year low for the pair, so a technical retracement can not be ruled out, particularly if tonight’s Consumer Inflation Expectation data prints at lower than last month’s 3.5% figure. NEAR-TERM OUTLOOK – NEUTRAL.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0243

Last night’s Reserve Bank of New Zealand’s Two Year Inflation expectation figure showed a significant increase on the last figure, showing that the Kiwi economy is picking up after Christchurch’s recent earthquake. This encouraging figure, coupled with an increase in global appetite for risk has seen the GBP NZD rate drop to close to a post-float low.NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


ARAB EMIRATE DIRHAM – The Pound Arab Emirates Dirham exchange rate (GBP/AED) is 5.94

With the Dirham continuing to be pegged to the USD at a rate of $1 = AED3.6725, movements in the Dollar are directly mirrored in Dirham movements. The Dirham has seen significant support since the start of May, when the GBP AED rate stood at above 6.13. Dirham support has coincided with a dip in worldwide appetite for risk caused by generally softer global economic data and fears of an impending Eurozone sovereign debt crisis. Further upside is possible for the Dirham if these fears persist. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.

For other live currency exchange rates and a currency converter see the currency news website.

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