Forex Forecast : Rate Predictions For GBP, USD, EUR, AUD, NZD, CHF

13 Jun 2011 at 2 PM - Written by John Cameron

STORY LINK Forex Forecast : Rate Predictions For GBP, USD, EUR, AUD, NZD, CHF

POUND STERLING

The Bank of England’s Quarterly Bulletin, released today, stated that British workers broadly expect UK inflation to drop back down to the Government’s target rate of 2% in the long-term. The Bank expects that this will mean that UK workers will not press for higher wages, meaning that inflation will not become entrenched in the British economy. A UK interest rate rise seems to be a long way off, given this report. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6321

The Greenback has lost a little ground against the other majors on the day following its move forward during the latter part of last week. This morning’s slight move against the Dollar looks to be nothing more than profit-taking from speculators and the Dollar could re-establish its upward trend sooner rather than later following last night’s worse-than-anticipated Chinese New Loans figures, which hint at a slow down in the pace of economic expansion in the world’s second largest economy. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1356

With little data of note released in the Eurozone today, the Euro has continued to trade weakly against the other majors. The GBP EUR rate has risen for the fourth straight session as reports emerge that ECB President Jean-Claude Trichet and German Finance Minister Wolfgang Schaeuble are at odds over the roles that the EU and IMF will play in a second Greek bail-out. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5440

The Aussie has held its ground on the day in spite of patchy global appetite for risk which has been caused by poor Chinese Credit Expansion data and renewed concerns over Greece’s debts. At the moment trans-Tasman transfers by institutional investors following last night’s aftershocks in Canterbury, New Zealand, are compensating for last week’s soft Australian data releases. However, this situation may not continue much longer. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0064

The Kiwi Dollar has endured a torrid day on the markets following last night’s aftershocks in the Canterbury region of New Zealand. The NZD had been enjoying a pronounced move forward in the markets which took it to multi-year highs against the USD and GBP at the end of last week, meaning that last night’s events have the potential to cause a key reversal for the Kiwi as speculators panic and take profit. NEAR-TERM OUTLOOK – NEAGTIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP/CHF) is 1.3664

The Franc has powered to a new record high against the Euro during today’s European session, as investors move their funds out of Euro-denominated assets over renewed fears that a second Greek bail-out may not be forthcoming. The Swissie has gained further ground due to the generally soft nature of data releases over the last week. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


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