Daily Exchange Rate Predictions : The Pound Sterling, Euro, Singapore Dollar & US Dollar

Published: Friday, 9 March 2012 18:00 BST - Written by Frank Davies

STORY LINK Daily Exchange Rate Predictions : The Pound Sterling, Euro, Singapore Dollar & US Dollar

This morning’s figures, which showed a sharp monthly drop in UK Industrial Production in January, have held back the POUND STERLING on the day. Apart from the Industrial Production data, the main interest on the day for clients holding Sterling-denominated assets, came from British Manufacturing data, which came in much as per expectations, meaning that Sterling heads into next week’s session on a NEUTRAL footing.

The EURO has come under concerted selling pressure in the markets today, in spite of last night’s debt swap agreement, which saw over 85% of investors holding Greek debt, agree to exchange their holdings for longer-term, lower-yielding bills. However, the fall-out from the deal was not positive for the single currency, with arguments ensuing as to whether last night’s agreement constituted a ‘credit event’. The euro heads into next week traded to a NEUTRAL TO NEAGTIVE bias, with the current GBP EUR exchange rate standing at 1.1960.

The US DOLLAR has surged on the day, as global investors scaled back their exposure to riskier asset classes due to continued concerns over Greece’s debt status., taking the GBP USD exchange rate as low as 1.5668. This afternoon’s stronger than expected US Non-Farm Payrolls data served to reduce the likelihood of a new tranche of QE in the States, in the minds of many market participants. This caused the Greenback to end the week’s trading on a POSITIVE footing.

The SINGAPORE DOLLAR has continued its upward trajectory against the Pound again today, as institutional investors expressed their approval for Greece’s debt swap deadline day deal. This has taken the GBP SGD exchange rate to its current level of 1.9664. The Singie came in for further support on increased appetite for risk late on in today’s European session, thanks to the strong US employment sector data, leaving the near-term outlook for the SGD as NEUTRAL TO POSITIVE.

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