Today?s Foreign Currency Predictions for The Pound Sterling, Turkish Lira, US Dollar and Euro

Modified: Tuesday, 13 March 2012 16:12 BST - Written by Tim Boyer

STORY LINK Today?s Foreign Currency Predictions for The Pound Sterling, Turkish Lira, US Dollar and Euro

The POUND STERLING has performed strongly on the day, thanks to this morning’s UK trade figures, which showed that the Britain’s trade deficit was narrower than anticipated in January. It is expected that tomorrow’s UK labour market data will show a reduced number of new jobless claims in the British economy in February, so Sterling is expected to trade with a NEUTRAL TO POSITIVE bias in the near-term.

The EURO has put in a tame showing during today’s session, in spite a stronger than anticipated German ZEW Survey this morning. Lingering fears that Greece is not out of the woods yet, with regard to its debt problems, have placed pressure on the single currency, taking the GBP EUR exchange rate to its current level of 1.1998. The euro is expected to trade on a NEUTRAL TO NEGATIVE footing in the lead-up to tomorrow morning’s key whole of eurozone inflation data.

The US DOLLAR has come under concerted selling pressure this afternoon, thanks to the return of ‘risk-on’ trading amongst the investment community. Strong Retail Sales numbers in the US this afternoon and strong performances for equities have driven the move, taking the GBP USD exchange rate all the way up to 1.5737. The next risk event of note for the Greenback comes tomorrow lunchtime, when Fed Chairman Ben Bernanke speaks. In the meantime, the Dollar is expected to trade with a NEUTRAL TO NEGATIVE accent.

The TURKISH LIRA has had a bad week in the markets. Monday saw Trukey’s currency hit its weakest level against the Greenback since January, thanks to concerns over poor domestic trade figures and rising oil prices. The move against the Lira has been replicated against the Pound, taking the GBP TRY exchange rate to 2.8168, having briefly flirted with levels in the 2.70s in the early part of the year. the Lira is expected to trade to a NEUTRAL TO NEGATIVE bias, moving forward.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts