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

Modified: Friday, 9 September 2011 05:43 BST - Written by John Cameron

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

POUND STERLING

After yesterday’s poor UK economic data and in particular the NIESR GDP estimate which suggests the British economy is in slowdown mode, it was no surprise that the Bank of England’s Monetary Policy Committee chose to keep rates on hold at 0.50% today. The BoE also elected not to extend its current Quantitative Easing programme – a move which caused a small relief rally for the Pound. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6040

The Greenback has once again performed strongly on the market today as European and UK share indices edge downwards on the session. With the ECB’s President Jean Claude Trichet noting that the Eurozone’s economy is facing considerable headwinds at today’s press conference, the Dollar may gain further ground in its safe haven capacity before the week is out. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1463

The Euro has come under concerted selling pressure this afternoon as investors adjust their views on future ECB policy decisions following comments by ECB president Jean-Claude Trichet. Trchet jettisoned his usual hawkish tone on monetary policy during this afternoon’s monthly press conference and noted that Eurozone growth prospects have deteriorated over the past month and that inflationary risks have eased. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5082


Last night’s figures showed that, against analysts’ expectations, Australia’s unemployment rate edged higher last month. However, with North American shares registering healthy gains yesterday and European share markets heading higher so far today, the Australian Dollar has still managed to record gains on the day against most of the other majors. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


SOUTH AFRICAN RAND – The Pound South African Rand exchange rate (GBP/ZAR) is 11.4720

With global risk sentiment improving over the past 24 hours, as evidenced by an improvement in world stock markets, the Rand has performed reasonably against the majority of the sixteen most-actively traded currencies. However, caution is advisable for investors holding Rand-denominated assets as the South African currency remains susceptible to a renewed flare-up of the Eurozone sovereign debt crisis. NEAR-TERM OUTLOOK – NEUTRAL.


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