Foreign Currency Exchange Rate Forecasts For GBP EUR USD NZD

Modified: Monday, 8 April 2013 15:32 BST - Written by Minesh Chaudhari

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

The EURO has strengthened against the Pound on the day, sending the GBP EUR exchange rate down to its current level of 1.1763. The single currency has registered gains in spite of the news that the Portuguese Constitutional Court has deemed spending cuts enforced by the nation’s policymakers ‘unconstitutional’. The possibility of a deepening of the eurozone’s debt crisis means that the euro is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The POUND STERLING has given up a modicum of ground against all of the other major currencies with the exception of the Japanese Yen today. The move against Sterling comes as institutional investors regain their willingness to hold their funds in euro-denominated assets. The cross-channel flow of funds has hurt the UK tender and means that the short-term outlook for GBP is NEUTRAL TO NEGATIVE.

The US DOLLAR has managed to register limited gains against Sterling so far today. The forward move for the safe-haven ‘Buck’ would surely have been of a greater magnitude were it not for Friday’s disappointing US jobs numbers, which dampened investors’ expectations regarding a near-term decrease in the Fed’s QE Programme. The GBP USD exchange rate sits at 1.5310 and the Greenback is expected to trade with a NEUTRAL bias in the short term.

The NEW ZEALAND DOLLAR has enjoyed a strong session so far, sending the GBP NZD exchange rate down to 1.8065. The ‘Kiwi’ has benefitted from a generalised improvement in global risk sentiment on the day, as investors’ fears regarding a pre-emptive military strike from North Korea recede. The NZD had been on the front foot already, following the Reserve Bank of Australia’s commentary of last week, which suggested that further Australian interest rate cuts were close at hand. The GBP NZD exchange rate is at 1.8072 and the New Zealand tender is expected to trade on a POSITIVE footing moving forward.

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