Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, JPY

Published: Friday, 9 December 2011 14:18 BST - Written by John Cameron

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

POUND STERLING

UK trade data, released earlier today, showed that the relatively weak state of Sterling has helped UK exports. The value of UK exports in October hit a record level. However, the Pound has failed to make up any significant ground as investors fret over Britain’s future position in Europe following Prime Minister David Cameron’s action in exercise his opt-out at last night’s EU treaty talks. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5618

Market jitters regarding the future of the Eurozone have been partially calmed by today’s announcement that a fiscal deal has been reached by the 17 countries who use the Euro. The result has been a slight improvement in equities, leading the Dollar to come under selling pressure against most of the other majors. This afternoon’s better-than-expected US Trade Balance numbers for October could add to the downside move against the Greenback. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1708

Europe’s single currency has held up well on the day, in spite of last night’s failure by the 27 EU nations to agree a treaty change. The leaders of the 17 Eurozone states carried on regardless, reaching a pact amongst themselves on automatic fiscal sanctions for countries which are running unsustainable deficits. This morning’s weak German export data cast a worrying shadow over these developments. NEAR-TERM OUTLOOK – NEUTRAL.


JAPANESE YEN – The Pound Japanese Yen exchange rate (GBP JPY) is 121.29


The GBP JPY exchange rate tested lower overnight, touching off the 121 level before heading higher again, as investors anticipated another failed Eurozone summit and sought out the safe haven of the Yen. However, support for the Yen has eased during today’s European session, with market participants reacting well to the announcement of a fiscal pact by Eurozone member states. Last night’s downward revision to Japan’s Q3 GDP growth figure could cause renewed support for the Yen over coming sessions. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


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