Hong Kong Dollar, Euro, Pound Sterling and US Dollar Currency Forecasts For Today

Published: Wednesday, 22 February 2012 18:00 BST - Written by John Cameron

STORY LINK Hong Kong Dollar, Euro, Pound Sterling and US Dollar Currency Forecasts For Today

The POUND STERLING has endured a torrid day on the markets, following the release of the minutes of the most recent Bank of England monetary policy committee meeting. The minutes showed that two of the nine-man committee had voted for a £75bn extension to the Bank’s asset purchase scheme, hinting at the likelihood of a further easing of British monetary policy before too long. Sterling is expected to trade with a NEGATIVE bias in the near-term following this development.

Bad news for investors holding EURO-denominated assets earlier today, when the latest whole of eurozone PMI Services survey showed that the key sector had contracted. The direction for the euro for the remainder of the week is likely to be determined by two sets of German data – tomorrow morning’s IFO Business Climate survey and Friday morning’s German GDP Growth numbers. The relatively soft tone of recent releases from the eurozone’s leading player may mean that the euro ends the week on a NEUTRAL-TO-NEGATIVE tone. The current GBP EUR exchange rate is 1.1831.

The US DOLLAR has been well-supported in the currency markets today, as institutional investors shifted their funds back into the safe-haven of the US treasury bill over fears that Greece is not yet out of the woods. This caused the GBP USD exchange rate to dip to an intraday low of 1.5651. With leading ratings agency Fitch’s action earlier today to downgrade Greece’s debt to a ‘C’ rating, causing a shift out of risk. If this move persists, then the Greenback will trade with a POSITIVE bias in the near-term.

The HONG KONG DOLLAR has enjoyed a strong week in the currency markets, which has seen the GBP HKD exchange rate dip from Monday’s 12.30+ levels to dip below 12.15 today. The HKD has benefitted from a positive performance from the Hang Seng, which has made pronounced gains in recent sessions. Gains for the US Dollar have also helped the Hong Kong currency, which is expected to trade to a NEUTRAL-TO-POSITIVE bias moving forward.

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