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

Published: Thursday, 17 May 2012 18:00 BST - Written by John Cameron

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

The US DOLLAR has been the major winner on the day as institutional investors continue to shun equities and move into safe havens. This has taken the GBP USD exchange rate down to 1.5792. There could be further upside to come for the Greenback, as this afternoon’s US labour market data disappointed. This means that the USD heads into tomorrow on a NEUTRAL TO POSITIVE footing.


It was another ‘bad news day’ for the EURO as Spanish bond yields rocketed in anticipation of the potential knock-on effects of a disorderly Greek debt default. This morning’s Spanish GDP data was predictably disappointing, meaning that the single currency is expected to trade with a NEGATIVE bias moving forward. The current GBP EUR exchange rate stands at 1.2448.


The POUND STERLING’s recent strong performance in the currency markets appears to have well and truly run out of steam, following another weak showing for the UK tender today. A downbeat assessment of the UK’s economic prospects from Prime Minister David Cameron earlier on hasn’t helped. Cameron’s assertion that troubles in the eurozone are equally bad news for Britain has inextricably linked the Pound to the euro, meaning that Sterling is expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term.


The JAPANESE YEN has stormed ahead in the markets today, outperforming all of the other sixteen most-actively traded currencies on the session. This has gone a long way towards proving that Japan’s currency is still considered an ultra-safe port during an economic storm. With Greece’s problems likely to multiply over the next five weeks, look out for a POSITIVE performance from the Yen in the near-term. The current GBP JPY exchange rate is 125.6300.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts