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

Published: Monday, 24 October 2011 14:07 BST - Written by John Cameron

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

POUND STERLING

This week is an extremely quiet week for UK data, with no significant releases due today. This means that investors are likely to concentrate on the UK’s relative yields versus other economies, which is likely to spell bad news for investors holding Sterling-denominated investments. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5918

All bets are off for the US Dollar as investors sit on their hands ahead of tomorrow’s US Consumer Confidence figure. With stock markets pushing forward during last night’s Asian session and European and UK indices holding on to moderate gains, the Greenback could leak further support over coming sessions. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1490

Weaker-than-anticipated German PMI Manufacturing numbers, released this morning, have raised concerns about Germany’s key manufacturing sector. Friday’s news that Eurozone Finance Ministers have OK’d the next €8bn tranche of Greek bail-out funding was a positive for the Euro, but further calming statements from European policy-makers will be required ahead of Wednesday’s debt crisis summit to stop the Euro leaking support. NEAR-TERM OUTLOOK – NEUTRAL.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5291


Last night’s Australian Producer Price Index data for Quarter 3 came in lower than analysts had expected, showing a pronounced drop-off from the Quarter 2 number. This downward move in PPI, which is considered a leading indicator of rising consumer prices, is bad news for the Australian Dollar, which has risen to its current position of strength against the other majors largely thanks to its considerable yield advantage. NEAR-TERM OUTLOOK – NEUTRAL.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 1.9770

Last night’s positive session for Asian stocks has seen the Kiwi make healthy gains against the majority of the other majors. Tonight’s New Zealand CPI Inflation figure for Quarter 3 will be keenly watched by analysts looking for a steer on the future direction of New Zealand interest rates. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


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