Pound Sterling, Euro, US Dollar and Swiss Franc Daily Currency Rate Predictions

March 20, 2012 - Written by Toni Johnson

STORY LINK Pound Sterling, Euro, US Dollar and Swiss Franc Daily Currency Rate Predictions

The old market adage of ‘buy on the rumour, sell on the news’ held true for the POUND STERLING today, as headline CPI Inflation figures for February showed a drop in the monthly rate of UK price rises from January’s figure. However, the drop was not as marked as expected, meaning the Pound goes into tomorrow’s session on a NEUTRAL TO POSITIVE footing.

The EURO has endured a mixed day on the markets today. On the credit side, the single currency has not lost any further ground against the Pound or the US Dollar. On the debit side, however, the EUR has failed to move forward against the other majors. Increased yields on Spanish and Italian 10-year bonds is a bad sign for the euro, which is currently trading with a NEUTRAL TO NEGATIVE bias. The current GBP EUR exchange rate is 1.1995.

The US DOLLAR has generally firmed in the currency markets today, taking the GBP USD exchange rate to 1.5863. Fears over a cooling of China’s mammoth economy, triggered by a statement from mining giant BHP Billiton earlier today, which suggested that steel production in China is slowing, caused a shift into safety plays by institutional investors. The Greenback is expected to trade on a NEUTRAL TO POSITIVE footing in the near-term.

The SWISS FRANC has lost a little ground against the Pound during today’s session, taking the GBP CHF exchange rate to its current level of 1.4461. This morning’s Swiss Industrial Production data came in significantly better than anticipated, however the Franc remains susceptible to potential future interventions by the Swiss National Bank in the currency market and to bad news from Switzerland’s major trading partner, the eurozone. This leaves the Franc trading with a NEUTRAL TO NEGATIVE bias.

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