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

28 Jun 2011 at 3 PM - Written by John Cameron

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

POUND STERLING

Figures released this morning by the Office of National Statistics confirmed that the UK Economy grew by 0.5% in the first quarter of 2011. The ONS figures also confirmed that UK Retail Sales contracted by 0.6% in the first three months of 2011, providing a reminder to investors that the UK economy is not in a strong state. The Pound came under further selling pressure when MPC member Adam Posen described the idea of raising interest rates as ‘nonsense’. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6025

The Greenback has traded sideways against the other majors today, as it remains near key technical levels against both the Pound and the Euro. Further Dollar upside is possible if doubts persist regarding Greece’s ability to enforce the austerity measures required to gain further EU-IMF emergency funding. NEAR-TERM OUTLOOK – POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1156

Eurozone bankers have issued comments in the last 24 hours, which suggest that they would be amenable to extending the terms on their loans to Greece. This would ease the pressure on Greece’s finances, but could cause serious pressure on the Euro, if leading ratings agencies S&P and Fitch view this action as a de facto default by Greece. At the moment, the Euro is more than holding its own and has gained over 0.25% on the day against the Pound and the Dollar. NEAR-TERM OUTLOOK – NEUTRAL .


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5260

This week sees a very light data schedule for the Australian economy, leaving the high-yielding Aussie open to shifts in global risk sentiment. With equities up on the day across world markets, the Australian Dollar has enjoyed a day of gains. Appetite for risk is likely to see a further increase if, as expected, Greece’s parliament votes in favour of a bill proposing stringent austerity measures. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NORWEGIAN KRONE – The Pound Norwegian Krone exchange rate (GBP/NOK) is 8.6972

Norwegian Trade Minister Trond Giske emphasised the close dependency of Norway’s economic well-being with the future prospects of the Euro, when he stated in an interview printed earlier today that, ‘things can’t go very badly with Europe and very well in Norway,’ because 80% of Europe’s exports go to the EU. The re-enforcement of this link could weigh heavily on the Krone if Greece’s debt woes escalate. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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

TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predictions Euro Forecasts Norwegian Krone Forecasts Pound Australian Dollar Forecasts Pound Dollar Forecasts Pound Euro Forecasts Pound Norwegian Krone Forecasts Pound Sterling Forecasts