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

Published: Wednesday, 21 September 2011 13:56 BST - Written by John Cameron

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

POUND STERLING

The minutes of September’s Bank of England Monetary Policy Committee meeting, released earlier today, showed that Adam Posen was once again the only member to vote in favour of an extension to the Bank’s current £200bn Quantitative Easing scheme. Although the minutes showed that the nine-man committee held discussions on allocating further resources to the QE programme, the Pound has so far avoided any serious downside against the other majors. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5606

The Greenback has come in for a renewed bout of support during today’s session, as global stock markets head downwards once again following yesterday’s gloomy assessment of the global economic picture by the IMF. If Federal Reserve Chairman Ben Bernanke uses his post-FOMC press conference this evening UK time to re-enforce the IMF’s message then the US Dollar could make further headway. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1425

‘No news is good news’ once again for the Euro, as investors’ focus moves away from Greece and Italy’s ongoing sovereign debt crises and onto the weak state of the real economy on a global scale. Tomorrow morning sees the release of a slew of PMI surveys both for the whole-of-Eurozone and for individual European states; if they indicate a slowdown in European economic activity, then the Euro may come under renewed selling pressure. NEAR-TERM OUTLOOK – NEUTRAL.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5266


The Australian Dollar’s progress of yesterday has been partially reversed today, as investors scale back their appetite for riskier assets, causing global equities markets to dip. Comments by the US Federal Reserve’s Ben Bernake later today may well determine the Aussie’s direction for the remainder of this week’s session; if Bernanke is downbeat on the global economy’s future prospects, the Australian Dollar is likely to lose further ground. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 1.9019

The New Zealand Dollar has struggled to break higher against the other major currencies on the day, largely due to last night’s worse-than-anticipated domestic Q2 Current Account Balance figures. If the Federal Reserve’s Ben Bernanke delivers a pessimistic message regarding the future prospects for the global economy later today and tonight’s Q2 GDP figures for New Zealand’s economy disappoint, then the Kiwi could come under selling pressure. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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