Foreign Currency Exchange Rate Predictions For GBP EUR, GBP AUD, GBP NZD & GBP CAD For Today

Published: Monday, 11 March 2013 15:00 BST - Written by David Woodsmith

STORY LINK Foreign Currency Exchange Rate Predictions For GBP EUR, GBP AUD, GBP NZD & GBP CAD For Today

Friday afternoon’s US Non-Farm Payroll data for last month showed that almost a quarter of a million workers had been added to the American payroll. Analysts had been expecting a print of only 165,000. The release triggered a lurch in risk sentiment which precipitated significant movement for the world’s major currency pairs.

Investors scrambled to buy AUSTRALIAN DOLLARS following the US labour market release, sending the GBP AUD broke down through its existing 28 year low on Friday afternoon. The pair is now effectively in ‘freefall’, with no levels of technical support to stop it going much, much lower. The outlook for GBP AUD is firmly NEGATIVE.

The ‘Aussie’s’ sister currency the NEW ZEALAND DOLLAR remains firmly tethered to risk, so Friday’s stunning US jobs data is likely to have a positive short-to-medium term effect on the ‘Kiwi’. When this works its way through, GBP NZD is likely to trade down to a new multi-decade low, placing the pair firmly in ‘no-man’s land’. The outlook for the GBP NZD exchange rate is firmly NEGATIVE.

GBP CAD tumbled to a new 32-month low following Friday’s US NFP data. A positive performance for the US economy represents good news for the CAD, meaning that there is almost certainly more heavy downside to come for the pair. The GBP CAD exchange rate is therefore expected to trade with a NEGATIVE bias in the short-term.

Meanwhile, with Chancellor George Osborne’s budget on 20th March is likely to reveal that the UK’s £1trillion+ budget deficit has not reduced at all since the coalition came to power in the middle part of 2010, investors needing to acquire EUROS will be considering acting sooner rather than later. Further near-term debt downgrades are likely for the UK’s sovereign debt, and given the tone of recent UK PMI surveys for each sector, another quarter of negative growth is on the cards for Q1, signalling an unprecedented triple dip recession for Britain. Many analysts are calling GBP EUR at below 1.1000 sooner rather than later and the outlook for the pair is also NEGATIVE.

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TAGS: Australian Dollar Forecasts Canadian Dollar Forecasts Currency Predi Forecasts