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

Published: Tuesday, 31 January 2012 16:00 BST - Written by John Cameron

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

POUND STERLING

Sterling has performed no more than steadily on the day, following this morning’s weaker than anticipated UK mortgage approval data for December. Last month’s net Consumer Credit number, released at the same time, showed a significant contraction, adding to the pressure on the Pound. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5783

The Greenback endured a torrid ten days in the lead up to last Friday’s weekly market close. The move was caused by an up-tick in global appetite for risk. However, this week’s session opened with market participants feeling nervous about ever-widening Portuguese debt spreads and the ongoing policy-void in Greece. A Dollar comeback could be on the cards. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1976

This morning’s whole-of-eurozone unemployment data provided grounds for optimism, showing that there were 34,000 fewer workers without a job than at the same time last month. However, the figures also showed that unemployment in the region has hit its highest level in history, at 10.4%. The situations in Greece and Portugal remain deeply concerning for investors holding Euros. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


SOUTH AFRICAN RAND – The Pound South African Rand exchange rate (GBP ZAR) is 12.2599


The Rand trended stronger against most of the other 16 most-actively currencies since Christmas, thanks to a general improvement in global stock indices. However, support for the Rand hit the buffers during yesterday’s session as share markets lost ground thanks to eurozone debt fears. Combined with fears that the Rand has been overbought, this leaves the South African currency open to profit-taking in coming sessions. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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