Exchange Rate Forecast For Japanese Yen, Euro, Pound Sterling And US Dollar

Published: Tuesday, 28 February 2012 18:00 BST - Written by John Cameron

STORY LINK Exchange Rate Forecast For Japanese Yen, Euro, Pound Sterling And US Dollar

The POUND STERLING held up relatively well against the other major currencies on the day. A better than anticipated CBI Reported Sales figure provided a fair wind for the Pound. However, tomorrow morning’s UK Mortgage Approvals numbers for January may not provide much encouragement for Sterling, given the generally soft nature of recent British housing market figures. This leaves Sterling predicted to trade with a NEUTRAL TO NEGATIVE bias.

This morning’s higher than anticipated German inflation figures pushed the EURO slightly higher against the US Dollar and the Pound. The market has largely ignored the latest downgrade of Greece’s debt by S&P, which happened earlier today. If tomorrow morning’s whole of eurozone CPI inflation numbers provide further evidence that the rate of price increases is on the up across the region, then the euro could finish the week on a NEUTRAL TO POSITIVE footing. The current GBP EUR exchange rate is 1.1799.

The US DOLLAR has eased once again in the currency markets, sending the GBP USD exchange rate up to 1.5900 on the day. Germany’s vote in favour of Greece’s bail-out yesterday afternoon has shored-up global risk appetite, taking the Greenback lower on the day. Tomorrow afternoon sees the release of key US Q4 GDP numbers and Personal Consumption data have the potential to be market-moving. In the meantime, the Dollar is likely to continue trading with a NEUTRAL-TO-NEGATIVE bias.

The JAPANESE YEN has come under selling pressure during today’s session, taking the GBP JPY exchange rate to 127.79. The Yen has retreated thanks to improved risk sentiment in global markets as fears over an imminent Greek debt meltdown recede. Investors remain wary of holding Yen-denominated assets, following recent attempts by Japanese policy-makers to weaken the country’s currency. From a technical perspective, the recent bout of Yen strength may be over and the Japanese currency is likely to trade with a NEAUTRAL-TO-NEGATIVE bias.

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