Tuesday?s Foreign Currency Rate Forecasts For The Pound Sterling, Euro, US Dollar and Indian Rupee

Published: Tuesday, 17 April 2012 18:00 BST - Written by Minesh Chaudhari

STORY LINK Tuesday?s Foreign Currency Rate Forecasts For The Pound Sterling, Euro, US Dollar and Indian Rupee

This morning’s German ZEW Sentiment Survey beat expectations, proving some positive news for the EURO. A strong uptake for Spanish treasury bills at today’s auction also helped steady investors’ frayed nerves. The GBP EUR exchange rate currently stands at 1.2147 and the single currency is expected to trade on a NEUTRAL footing in the near-term.


UK inflation data, released earlier today, surprised analysts by coming out higher than had been anticipated, providing support for the POUND STERLING in early trading. This may limit the Bank of England monetary policy committee’s scope to extend its current QE programme – we will learn more tomorrow morning, when the minutes of April’s MPC committee are released. Until then, Sterling trades with a NEUTRAL TO POSITIVE bias.


The US DOLLAR has given up ground against the majority of the other majors during today’s session. A strong performance from European equities markets following a downward move in the yields paid by Spain’s government on its bonds, has buoyed investor sentiment, while stronger than expected US Building Permits data for March, has also increased appetite for risk. The current GBP USD exchange rate is 1.5934 and the Dollar is expected to trade on a NEGATIVE footing in the near-term.


The INDIAN RUPEE has once again leaked support during this week’s session, taking the GBP INR exchange rate to 82.0335. A surprise 50 basis point cut in India’s key lending rate overnight by the country’s central bank has elicited downside pressure on the Rupee. It was the first rate cut in three years by the RBI, so the INR is expected to trade with a NEGATIVE bias moving forward.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts