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

Published: Thursday, 12 January 2012 18:00 BST - Written by Tim Boyer

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

POUND STERLING

Lunchtime’s Bank of England monetary policy committee announcement saw the UK’s central bank maintain its interest rates at their current record low of 0.50%, as per expectations. The Bank also elected not to extend its current £275bn asset purchase scheme. Some investors had priced in an increase to the scheme, however the Pound has ebbed support this afternoon, perhaps as a delayed reaction to this morning’s weak manufacturing and industrial output numbers. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5331

This afternoon’s US data showed that American retail sales edged forward again last month. However, December’s shop sales growth rate of 0.1% was the lowest for seven months and considerably below analysts’ expectations. The tame figure has caused some downward movement for global stock indices, which could cause some strengthening of the safe-haven Greenback during the remainder of this week’s session. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1971

The Euro has staged a concerted recovery against both the Pound and the US Dollar during today’s session. Europe’s single currency was propped up by the ECB’s decision to maintain its key lending rate at 1% earlier today – some analysts had suggested that a rate cut was on the cards. The Euro was further supported from ECB President Mario Draghi’s assertion that the current European credit easing scheme was ‘temporary’ and that the ECB and EFSF would work closer together to manage the region’s debt crisis. NEAR-TERM OUTLOOK – NEUTRAL.


HONG KONG DOLLAR – The Pound Hong Kong Dollar exchange rate (GBP HKD) is 11.9022


The GBP HKD exchange rate has dipped during this week’s trading. The Hong Kong Dollar continues to broadly reflect movements for its big brother, the US Dollar. With this afternoon’s weak US retail sales numbers and a weak performance for global stocks this afternoon, the HKD could come in for further support in coming sessions. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


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