Foreign Currency Exchange Rate Forecast For GBP EUR Exchange Rate And Outlook for USD & NZD

Published: Monday, 15 April 2013 14:00 BST - Written by John Cameron

STORY LINK Foreign Currency Exchange Rate Forecast For GBP EUR Exchange Rate And Outlook for USD & NZD

The POUND STERLING has registered healthy gains against the high-yielders on the day, but has struggled to hold its own against the US Dollar and the euro. A lack of UK data releases meant that investors’ thoughts rested on the structural problems facing the British economy on the day. The Pound is expected to trade on a NEUTRAL TO NEGATIVE footing in the lead up to tomorrow morning’s domestic inflation data, which could prove market-moving.

The EURO has held its own against Sterling on the day, in spite of the weekend news that both Ireland and Portugal had renegotiated the terms of their respective EU/IMF/ECB emergency bailouts. This morning’s stronger than anticipated whole of eurozone trade balance figures have helped to prop up the single currency, ensuring that the Pound to euro exchange rate (currency : GBP/EUR) currently trades at 1.1726. The euro is expected to trade with a NEUTRAL TO POSITIVE bias in the short term.

The US DOLLAR has traded steadily so far today, meaning that the Pound to Dollar exchange rate (currency : GBP USD) sits at 1.5337. Safe-haven support for the Greenback has been cancelled out by the hangover caused by last Friday’ s weak US Retail Sales data. Investors will be given a renewed steer on the likelihood of a continuation of America’s highly controversial Quantitative Easing programme when March’s CPI Inflation data is released tomorrow afternoon in the States. In the meantime, the Buck is expected to trade on a NEUTRAL footing.

The NEW ZEALAND DOLLAR has suffered a pronounced bout of selling pressure against Sterling so far today. The move has caused the GBP NZD exchange rate to jump from its record lows of last week all the way back up to its current level of 1.8098. The shift out of Kiwi-denominated assets has been triggered by a generalised lack of appetite for risk as investors brace themselves for bad news from North Korea. Poor Chinese growth data released overnight has further fuelled the move out of Kiwi-denominated assets. The outlook for the Pound to New Zealand Dollar exchange rate is NEUTRAL TO NEGATIVE.

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