Foreign Currency Exchange Rate Prediction For GBP EUR And Forecasts For AUD & NZD

Modified: Tuesday, 2 April 2013 12:30 BST - Written by Toni Johnson

STORY LINK Foreign Currency Exchange Rate Prediction For GBP EUR And Forecasts For AUD & NZD

This morning’s report from the British Chamber of Commerce, which predicted that the UK economy has avoided slipping in to an unprecedented triple dip recession, has failed to stop the POUND STERLING losing ground against the majority of the other sixteen most-actively traded currencies so far today. Weaker than expected UK Mortgage Approvals and PMI Manufacturing data held back the Pound and the short-term outlook for the UK tender remains NEUTRAL TO NEGATIVE.

The EURO has clawed back some of its recent losses against Sterling so far today, sending the GBP EUR exchange rate down to 1.1829. This morning’s encouraging German and whole of eurozone PMI Manufacturing surveys have provided a fair wind for the single currency. The euro is expected to trade on a NEUTRAL TO POITIVE footing in the near-term ahead of tomorrow morning’s eurozone CPI inflation data.

The AUSTRALIAN DOLLAR has registered healthy gains against Sterling so far today, sending the GBP AUD exchange rate down to 1.4509 earlier. The ‘Aussie’ was assisted by the upbeat tone of the statement which accompanied last night’s Reserve Bank of Australia policy decision, which noted increased stability in the global economy in recent months. As long as the situation in Cyprus remains calm, then the ‘Aussie’ is expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

The NEW ZEALAND DOLLAR has powered ahead against the Pound since the markets re-opened following the Easter shutdown. Support for the ‘Kiwi’ has sent the GBP NZD exchange rate down as low as 1.7980 on the day. The move appears to be risk-driven – gains of over 1% for London’s FTSE 100 and Frankfurt’s Dax suggest that investor sentiment is buoyant, a fact which favours the risk-sensitive commodity-driven NZD. The ‘Kiwi’ has also benefitted from last night’s Reserve Bank of Australia commentary which hinted at further Australian interest rate cuts later this year. The outlook for the ‘Kiwi’ is POSITIVE.

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