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

12 Jul 2011 at 1 PM - Written by John Cameron

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

POUND STERLING

This morning’s UK inflation data surprised analysts, showing that the headline CPI measure of UK inflation had dropped last month, against expectations. Downward pressure on Sterling was accentuated by trade data, also released this morning, which showed that the UK’s trade gap widened in May. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5864

The Dollar enjoyed significant support in the market in early trading today, following comments by President Obama which warned of the dire consequences for the US economy of a failure by US policy-makers to reach agreement on raising the US debt ceiling. With ongoing fears that the Eurozone’s sovereign debt situation may be about to spread taking equities markets lower, the Dollar may see further safe-haven support in coming sessions. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1316

Europe’s single currency started the day on the back foot, as fears increased that Italy and Spain will be drawn into the Eurozone’s sovereign debt crisis. However, the Euro has recovered as the European session progressed, thanks to soothing comments emanating from the meeting of Eurozone Finance Ministers which stated that they are set to introduce measures to increase, ‘the flexibility and the scope’, of the European Financial Stability Facility. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.4926

The Aussie has experienced considerable selling pressure during today’s session due to ongoing concerns that the Eurozone sovereign debt crisis is worsening. This has seen downward movement in global stocks since the markets re-opened for business at the start of the week, with institutional investors shifting funds out of riskier assets and into Australian bonds. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 1.9321

The Kiwi has suffered today, due to a downward move in global equities markets. Fears that the global economic recovery is running out of steam have been heightened by soft Chinese data releases over the past week, causing further selling pressure on the NZD, which has performed worse than any of the other majors today. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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

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