Forex Forecast : Rate Predictions For GBP, USD, EUR, HKD

6 Dec 2011 at 4 PM - Written by John Cameron

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

POUND STERLING

Weak Retail Sales figures from the British retail Consortium have held back the Pound on the day. The figures showed that last month’s UK shop sales were at their weakest level of growth since May. The Halifax house price survey released overnight showed a monthly contraction of almost 1% in UK property prices, adding to the downside pressure on Sterling. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5562

Equities markets have been unable to make up their minds since the European open, meaning that the Greenback has traded sideways against the other majors on the day. This is a surprise given S&P’s dramatic threat to downgrade the credit rating of leading European states. Given the market’s reaction, perhaps it is S&P which needs to be downgraded – the market appears to be paying less and less attention to their assessments. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1631

Against all expectations, the Euro has gained ground against both the Pound and the Dollar during today’s session. Europe’s single currency was expected to come under significant pressure today following S&P’s threat to downgrade Eurozone sovereign debts last night. German Finance Minister Wolfgang Schaeuble managed to turn a negative into a positive by suggesting that S&P’s threat provided "best possible incentive" to European policy-makers to come up with a workable solution to the region’s debt crisis at Friday’s summit. NEAR-TERM OUTLOOK – NEUTRAL.


HONG KONG DOLLAR – The Pound Hong Kong Dollar exchange rate (GBP HKD) is 12.0999

The Hong Kong Dollar has made significant gains against the Pound on the day, following a decent session for Asian stocks overnight. With the Chinese Yuan expected to come in for support in coming months, many analysts are expecting a similar movement from the HKD. Such a move could drive the GBP HKD exchange rate back down towards key support at the 12.00 level. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


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

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