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

15 Aug 2011 at 2 PM - Written by John Cameron

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

POUND STERLING

The Pound suffered in early trading today with August's Rightmove house price survey, released last night, showing that UK property sellers dropped their asking prices by a significant amount for the second month in succession. Tomorrow morning’s key UK CPI Inflation data for July will set the tone for the Pound for the remainder of this week’s session. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6344

The Greenback has come under sustained selling pressure throughout the day as appetite for risk flooded back into the markets, sending share markets higher. However, with the President of the World Bank, Robert Zoellick, warning that the global economy is heading towards a ‘new danger zone’, as worries over global sovereign debts and European retail banks fail to recede, the Dollar could quickly strengthen at a moment’s notice. NEAR-TERM OUTLOOK – NEUTRAL.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1392

An emergency meeting of Italy’s cabinet over the weekend led to an announcement of further spending cuts and the Italian prime minister, Silvio Berlusconi, claiming that Italy will balance its budget by 2013. At the moment, the market appears willing to believe him as the Euro holds its ground, however more bad news is surely not far off for the accident-prone single currency. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5694

The Australia Dollar has continued to claw back the losses that it incurred during the recent stock market collapse since the start of this week’s session. However, momentum for the Aussie may be halted if the minutes of the Reserve Bank of Australia’s August Board meeting, released in the early hours of tomorrow morning, once again paint a gloomy picture of the future prospects for Australia’s economic recovery. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NORWEGIAN KRONE – The Pound Norwegian Krone exchange rate (GBP/NOK) is 8.9630

With Norway’s central bank electing to keep its headline rate of interest on hold at 2.25% in the early part of the month and the price of a barrel of Brent crude oil, (the source of much of Norway’s wealth), plummeting in the intervening period, it has not been a good couple of weeks for the Krone. With fears growing over the structural strength of Norway’s major trading partner, the Eurozone, further downside is possible for the Krone. NEAR-TERM OUTLOOK – NEGATIVE.


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

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