Foreign Currency Exchange Rate Forecasts For GBP EUR USD NZD

Published: Thursday, 25 April 2013 14:00 BST - Written by John Cameron

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

The POUND STERLING has outperformed all of the other sixteen most-actively traded global currencies so far during today’s session, thanks to this morning’s Q1 UK GDP data which revealed that economic activity in Britain rose by a higher than anticipated 0.3% during the first three months of this year. However, this morning’s comments from Mervyn King, the Bank of England Governor, reaffirming his recent calls for an increase in his Bank’s QE programme threaten to halt Sterling’s improvement. The Pound is expected to trade on a NEUTRAL footing moving forward.

The EURO has given up a limited amount of ground against the other major currencies so far today. This morning’s Spanish unemployment figures largely told investors what they already knew – the Iberian economy is failing and joblessness has hit a record level of 27.2%. However, this morning also brought the publication of the German government’s latest 2013 growth forecast, which saw the Teutonic administration increase its GDP prediction for this year by 0.1%. The current Sterling to euro exchange rate (currency : GBP EUR) stands at 1.1810 and the outlook for the single currency is NEUTRAL TO NEGATIVE.

The US DOLLAR has put in a poor performance so far today, sending the GBP USD exchange rate up to its current level of 1.5444. Selling pressure on the Greenback was partly driven by the news that Britain’s economy has avoided a triple dip recession, which caused a move out of safe haven assets. Fears that the economic recovery in the US is slowing have also held back the Buck. It is anticipated that the USD will trade on a NEUTRAL TO NEGATIVE footing in the short-term.

The NEW ZEALAND DOLLAR has given up a small amount of ground against Sterling today, sending the GBP NZD exchange rate up to as high as 1.8091. Ultimately, this morning’s positive UK growth data may favour the risk-sensitive Kiwi. The New Zealand tender will be afforded further direction tonight when the latest domestic trade balance figures are published. A trade surplus of some NZD470m is expected and the NZD is predicted to trade with a NEUTRAL TO POSITIVE bias in the meantime.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts