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

Published: Wednesday, 7 March 2012 18:00 BST - Written by Toni Johnson

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

The POUND STERLING has lost a small amount of ground against the euro on the day, but moved forward slightly against the US Dollar. There were no tier one data releases in the UK today, meaning that the Pound is likely to trade in a tight range against the other majors in the lead-up to tomorrow’s Bank of England policy announcement. This leaves the outlook for Sterling as NEUTRAL.

The EURO was buoyed by the news that almost 40% of institutional investors holding Greek bonds have now signed up for the country’s debt swap. This saw Europe’s single currency firm up in the markets during today’s session, taking the GBP EUR exchange rate to 1.1974. This morning’s weaker than anticipated German Factory Order data failed to hold back the euro, with the single currency expected to trade on a NEUTRAL footing until tomorrow afternoon, at least.

The US DOLLAR has given up some of the gains which it made in the early part of the week during trading today. Global stock markets made modest gains on the day, as investors’ fears that Greece might be forced by banks holding Greek bonds to default on its debt commitments, receded. This afternoon’s slightly better than expected US Employment Change numbers bode well for Friday’s Non-Farm Payroll numbers, which would be bad news for the Dollar. This leaves the Greenback trading with a NEUTRAL TO NEAGTIVE bias. The GBP USD exchange rate stands at 1.5738.

The SOUTH AFRICAN RAND suffered in the markets during yesterday’s session as fears of a Greek default took a hold of global investors. These fears receded today, thanks to an encouraging take-up for Greece’s debt swap scheme. The current GBP ZAR exchange rate is 11.9932 and with the major trend for the pair to the downside, the RAND is expected to trade to a POSITIVE footing moving forward.

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