Currency Rate Predictions For The Pound Sterling, Euro, US Dollar and Norwegian Krone For Today

Modified: Tuesday, 8 May 2012 14:57 BST - Written by David Woodsmith

STORY LINK Currency Rate Predictions For The Pound Sterling, Euro, US Dollar and Norwegian Krone For Today

Weak UK House Price data in the form of the latest Halifax survey, barely affected levels on the POUND STERLING on the day. However, figures showing that sales of new cars in Britain showed an annualised increase of 3.3% last month, provided a chink of hope, meaning that Sterling heads for the weekend close on a NEUTRAL TO POSITIVE footing.


This morning’s whole-of-eurozone Composite PMI survey sent out ominous signs regarding the future prospects for the EURO. The data revealed that the eurozone’s private sector is contracting at a far faster rate than had previously been thought. This took the GBP EUR exchange rate to 1.2328 by the middle part of today’s European session, and the single currency is expected to trade with a NEUTRAL TO NEGATIVE bias moving forward.

The US DOLLAR has experienced its usual volatility around the release of this afternoon’s key Non-Farm Payroll figure. The number showed that only 130,000 new jobs had been created last month in the US economy, well below expectations of a 165,000 showing. This has added to the feeling amongst the investment community that activity is cooling in America’s giant economy. This could see investors factor-in a higher likelihood of QE3 from the Federal Reserve later this year, which will in turn see the Greenback trade on a NEUTRAL TO NEGATIVE footing in the short term. The GBP USD exchange rate stands at 1.6169.

The NORWEGIAN KRONE has steadily weakened against Sterling over the past two months, taking the GBP NOK exchange rate to its current level of 9.3240. The Norwegian currency has faltered in the markets thanks to growing concerns over the sovereign debt situation in its major trading partner, the eurozone, and by mounting evidence that the rate of economic growth is slowing in China, the US and the UK. This means that the NOK currently trades with a NEGATIVE bias.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts