Foreign Currency Forecasts Today For Euro, US Dollar, Sterling and South African Rand

Modified: Wednesday, 15 February 2012 18:03 BST - Written by John Cameron

STORY LINK Foreign Currency Forecasts Today For Euro, US Dollar, Sterling and South African Rand

POUND STERLING

UK Unemployment figures, released this morning, showed that the British jobless rate rose by 48,000 in the last quarter of 2011. There was better news for Sterling later this morning, when the Bank of England’s Quarterly Inflation Report suggested that the UK’s economy will waver this year, but ultimately avoid a double dip recession. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5700

A slew of US data was released this afternoon, ahead of tonight’s Federal Reserve Meeting Minutes. This afternoon’s figures were generally weaker than had been anticipated, with January’s Industrial Production numbers proving particularly disappointing. As usual, this caused a flight to safety from institutional investors, causing the Greenback to strengthen slightly. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.2020

Today’s trading session started positively for the euro, with German and whole of eurozone GDP data showing at better than expected levels. However, things turned sour for Europe’s single currency later in the day, when reports suggested that Greece might be forced to accept a partial debt default in return for its next tranche of bail-out funding. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


SOUTH AFRICAN RAND – The Pound South African Rand exchange rate (GBP ZAR) is 12.1390


The Rand has come under considerable selling pressure following the bout of strong support which saw the GBP ZAR exchange rate break and hold below the 12.0000 level earlier this month. From a technical perspective, the recent Rand weakness looks likely to be little more than a short-term correction in a long-term downtrend for GBP ZAR. A resolution to Greece’s immanent cash flow problems would help South Africa’s currency. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.

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