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

Published: Tuesday, 13 December 2011 16:47 BST - Written by John Cameron

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

POUND STERLING

This morning’s UK CPI inflation numbers for November showed that the rate of British price rises is cooling, making the likelihood of a Bank of England interest rate rise even more than it already was, (and that was already fairly remote). Sterling has lost a little ground against nearly all of the majors on the day, with the notable exception of the Euro. NEAR -TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5627

This afternoon’s US Retail Sales data revealed that American shop sales continued to show a slight expansion last month. However, the monthly gain of 0.2% was not as large as the markets had been expecting. American stocks showed little movement on the day and the Dollar followed suit to hold steady against the other majors. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1718

The Euro has suffered another torrid day on the markets, losing another 1% against the USD by the middle part of the European session and a slightly lesser amount against Sterling. This morning’s key German ZEW confidence survey came out marginally better than analysts had expected, but still showed a generally negative outlook from the business community of Europe’s leading economic power. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP NZD) is 2.0958


This week’s extremely light schedule of New Zealand data releases has caused investors’ focus to shift away from the Kiwi. Last week’s Reserve Bank of Australia interest rate cut partially eroded the Australian Dollar’s relative yield advantage against the NZD, causing some short term support for the Kiwi. However, the NZD’s relative performance over coming weeks will be decided by stock market moves. More dithering from Eurozone policy-makers could see the Kiwi weaken once more, sending the GBP NZD exchange rate back up towards 2.10 once again. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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TAGS: American Dollar Forecasts Currency Predictions Euro Forecasts New Z Forecasts