Foreign Currency Prediction For GBP EUR Exchange Rate And USD, NZD Forecasts

Published: Thursday, 21 March 2013 15:00 BST - Written by David Woodsmith

STORY LINK Foreign Currency Prediction For GBP EUR Exchange Rate And USD, NZD Forecasts

The POUND STERLING has enjoyed an encouraging day on the foreign currency markets thanks to positive UK data releases earlier today. Retail Sales figures for last month showed at a far better than anticipated annualised 3.3% and the latest UK public sector net borrowing figures were also ‘less bad’ than had been anticipated thanks to revenues accrued from the Government’s auction of 4G mobile phone licences last month. The outlook for Sterling is NEUTRAL.

The EURO came under sustained selling pressure earlier today, as investors continued to fret about the potentially decimating effect of the bank levy which comes as a condition of the nation’s proposed EU/ECB/IMF bailout. News this afternoon that Cyprus’s leaders appear to have ditched these plans has triggered renewed support for the single currency which is now expected to trade on a NEUTRAL TO POSITIVE footing moving forward. The current GBP EUR exchange rate is 1.1743.

The US DOLLAR has given up ground against Sterling since last night’s Federal Reserve FOMC policy announcement. The US central bank’s assertion that current levels of QE need to be maintained because of the fragile state of the American economy has caused selling pressure on the ‘Greenback’. The GBP USD exchange rate currently sits at 1.5148 and it is anticipated that the ‘Buck’ will trade on a NEUTRAL TO NEGATIVE footing in the near-term.

The NEW ZEALAND DOLLAR has outperformed all of the other sixteen most-actively traded currencies so far today, thanks to last night’s highly positive New Zealand GDP data for Q4. The latest growth numbers showed that the Kiwi economy grew at an annualised 3.0% in the final three months of 2012. The GBP NZD exchange rate currently sits at 1.8185 and the NZD is expected to trade with a NEUTRAL TO POSITIVE bias in the short term.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts