Daily Currency Rate Predictions For The US Dollar, Pound Sterling, Euro and Japanese Yen

Published: Monday, 19 March 2012 18:00 BST - Written by Ben Hughes

STORY LINK Daily Currency Rate Predictions For The US Dollar, Pound Sterling, Euro and Japanese Yen

The POUND STERLING fared well on a day which was extremely light on risk events. However, in the absence of any negative data releases, the Pound performed with credit. The GBP is expected to perform with a NEUTRAL TO POSITIVE bias in the near-term, in anticipation of a business-friendly budget statement from Chancellor George Osborne on Wednesday.

The EURO came under heavy selling pressure at several times during today’s session, as concerns flared up regarding the way that Greece’s haircut/bail-out, agreed last week, would impact on the Default Swap market. The single currency sailed into uncharted territory when Greek bond-holders accepted longer-term lower yielding bills in return for their existing investments. The current GBP EUR exchange rate is 1.2003 and the single currency is expected to trade with a NEUTRAL TO NEGATIVE bias in the run-up to tomorrow morning’s German Producer Prices data.

The US DOLLAR has endured a NEUTRAL TO NEGATIVE day on the currency markets, taking the GBP USD exchange rate all the way up to 1.5904 on the day. A strong showing from US equities caused the Gereenback to leak support, but the move against the USD goes deeper than this – last Friday’s weak US Industrial Production and Michigan Sentiment Survey results surprised the markets and raised questions about the strength of America’s apparent economic recovery of recent months.

The JAPANESE YEN has continued its horror run of recent sessions today, taking the GBP JPY exchange rate to 132.66. The Yen has suffered in recent sessions as Asian institutional investors unwind their positions of safety, following Greece’s agreement of its next €130bn of bail-out funding. However, the move against the Japanese currency is not just driven by fundamentals – analysts are suggesting that the unwinding of carry trades by market participants is also hurting the JPY, meaning that the Yen heads into tomorrow’s session on a NEGATIVE footing.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts