GBP EUR Rate Edges Higher, NOK & USD Predictions

Published: Thursday, 30 August 2012 18:00 BST - Written by Toni Johnson

STORY LINK GBP EUR Rate Edges Higher, NOK & USD Predictions

Support for the US DOLLAR has once again eased during today’s session, in spite of this afternoon’s weaker than anticipated US Personal Consumption data. Ordinarily, on a day when shares have traded down and a weak domestic data set has been released, analysts would expect the Buck to strengthen. The fact that it hasn’t suggests that investors expect Fed Chairman Ben Bernanke to drop heavy hints regarding more QE tomorrow. The GBP USD exchange rate stands at 1.5856.

The POUND STERLING has registered gains across the board during today’s session. This morning’s downgrading of its UK GDP growth forecast for the year was hardly unexpected, so didn’t cause any significant downside pressure on Sterling. It will probably be a similar story for tomorrow morning’s Nationwide House Price survey. Tomorrow evening’s comments from Bank of England MPC member Adam Posen at Jackson Hole will be closely monitored by investors for clues on the future direction of the UK’s monetary policy.

This morning’s German unemployment data was weaker than expected, raising further question marks regarding the eurozone’s premier economy. If tomorrow morning’s German Retail Sales figures for this month also disappoint, then things could rapidly become sticky once more for the EURO. August’s whole-of-eurozone consumer confidence number, also released this morning, showed at exactly the same level as July’s edition, providing some comfort for investors holding euro-denominated assets. The current GBP EUR exchange rate stands at 1.2632.

The NORWEGIAN KRONE has traded neutrally against the Pound on the session, meaning that the GBP NOK exchange rate has hovered around its current level of 9.2055 all day. Jan Qvigstad, the Deputy Governor of Norway’s central bank, issued a warning to currency speculators earlier today when he stated that the Norges Bank will not tolerate a permanently strong Krone. If Qvigstad’s Bank is true to his word, the NOK may not be the one to hold moving forward.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts