Norwegian Krone, Pound Sterling, US Dollar and Euro Currency Forecasts For Today

Published: Tuesday, 6 March 2012 18:00 BST - Written by James Fuller

STORY LINK Norwegian Krone, Pound Sterling, US Dollar and Euro Currency Forecasts For Today

There was a blow to the UK’s ego earlier today, when official figures showed that Brazil had overtaken Britain as the sixth largest economy in the world. There was more damaging news for the POUND STERLING with the release of this month’s Halifax House Price survey, which showed a surprise contraction in UK property prices last month. This leaves Sterling trading with a NEUTRAL TO NEGATIVE bias.

The US DOLLAR powered forward in the markets today, as institutional investors fell over themselves to get out of risk. The Greenback traded stronger than all of the other sixteen most-actively-traded currencies, with the exception of the Yen. This saw the GBP USD exchange rate tumble to 1.5714. Tomorrow sees a busy schedule of US data releases, including February’s employment change data, which will give a steer on Friday’s Non-Farm Payrolls number. The Dollar is expected to trade with a POSITIVE bias in the lead-up to these numbers.

The EURO has had a steady day, seeing the GBP EUR exchange rate trade in a tight range a few pips either side of 1.1980. This morning’s whole-of-eurozone GDP data showed a marked contraction in economic activity in the region during the last three months of 2011, as per expectations. All eyes will now be focussing on Thursday’s ECB rate decision, so the euro is expected to trade on a NEUTRAL footing until then.

The NORWEGIAN KRONE has taken a pummelling in the markets today, as global appetite for risk took a significant hit. The shift into safety from institutional investors has been driven by renewed fears over the continued stability of the Persian Gulf, as Western states appear to be ‘ganging-up’ on Iran in an attempt to force the rogue nuclear state to comply with their wishes. The current GBP NOK exchange rate is 8.9629. the Krone is likely to trade with a NEUTRAL TO NEGATIVE bias until calm is restored.

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