Sterling, Euro, Norwegian Krone and Dollar Currency Rate Forecasts

Published: Tuesday, 14 February 2012 18:00 BST - Written by John Cameron

STORY LINK Sterling, Euro, Norwegian Krone and Dollar Currency Rate Forecasts

POUND STERLING

This morning’s UK CPI Inflation data for January showed that the rate of British price rises is cooling significantly. The drop-off in price rises has been attributed to the VAT rise of January 2011 working its way out of the twelve month rolling figure – whatever the reason, it makes a Bank of England interest rate rise even less likely any time soon. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5692

The Dollar has outperformed all of the other sixteen most-actively traded currencies during today’s session. Risk aversion has crept back into global markets following leading Ratings Agency Moody’s action in downgrading the credit ratings of six leading eurozone states. Tomorrow’s Federal Reserve minutes from January’s meeting will be closely-watched. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1933

This morning’s German ZEW Survey significantly bettered analysts’ expectations, breaking into positive territory. If the positive news from the eurozone’s powerhouse economy continues tomorrow morning when German Q4 GDP Growth numbers are released, then market sentiment could swing back in the euro’s favour. NEAR-TERM OUTLOOK – NEUTRAL.


NORWEGIAN KRONE – The Pound Norwegian Krone exchange rate (GBP NOK) is 8.9920


The Norwegian Krone has enjoyed another positive session today. The Krone has fared well in recent weeks partly due to the improved performance of the euro, as Norway is heavily dependent on exporting its goods and raw materials to the eurozone. However, the recent bout of Krone strength may be halted later this week when market rumours suggest that Norwegian policy-makers may attempt to turn investors against the NOK in order to provide a fillip for domestic exporters. NEAR-TERM OUTLOOK – NEUTRAL.


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