Exchange Rate Predictions For The Pound Sterling, Euro, US Dollar and Hong Kong Dollar

May 15, 2012 - Written by John Cameron

STORY LINK Exchange Rate Predictions For The Pound Sterling, Euro, US Dollar and Hong Kong Dollar

The POUND STERLING has hit the headlines for all the wrong reasons today. By the middle part of this afternoon’s European session, Sterling was the worst-performing of all of the sixteen most-actively traded currencies, thanks to this morning’s weak UK trade balance data. The Pound is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.


The EURO received a much-needed fillip on the day with the release of German GDP growth data which significantly bettered expectations. This took the GBP EUR exchange rate back down through the 1.2500 level briefly, but the pair recovered to trade to 1.2543 by the European equities market close. If tomorrow’s eurozone CPI inflation numbers outstrip expectations, then the euro could head towards the weekend trading with a NEUTRAL bias.


The US DOLLAR has registered healthy gains against the Pound and the euro today as global investors continued to shift their funds out of riskier assets and into safe havens. This afternoon’s key US retail sales and CPI inflation numbers came in as per expectations, so the main factor affecting Dollar levels in the near-term continues to be Greece’s ongoing debt woes. The current GBP USD exchange rate stands at 1.6040 and the Greenback is expected to trade on a NEUTRAL TO POSITIVE footing moving forward.


The HONG KONG DOLLAR has benefitted from its loose peg with the US Dollar in recent sessions, as investors seek out the safest of safe havens in anticipation of stormy times ahead for the global economy. The good news for the HKD is that China is continuing with measures to make its currency, the Yuan, more readily convertible. The current GBP HKD exchange rate stands at 12.4460 and Hong Kong’s currency is expected to trade on a NEUTRAL TO POSITIVE footing in the near-term.

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