Exchange Rates Forecast: Pound, Euro, Dollar, AUD , NZD & CAD

Modified: Thursday, 2 May 2013 09:40 BST - Written by Toni Johnson

STORY LINK Exchange Rates Forecast: Pound, Euro, Dollar, AUD , NZD & CAD

Pound Sterling

The Pound is within 0.4% of an eleven-week high against the US Dollar ahead of the release of a report that is expected to show that UK construction fell at a slower pace than in April. Against the Euro, Sterling was little changed as the market awaits the European Central Bank’s decision on interest rates. The construction PMI is expected to come in at 48, up from the 47.2 in March. A reading below 50 indicates contraction.

US Dollar

The ‘Greenback’ fell for a fifth-day as the Federal Reserve said that it will maintain its bond buying programme at a pace of $85 billion a month and said that is prepared to raise or lower the level of purchases as economic conditions change. The currency was also weighed down by data that showed that US companies hired less staff than forecast in April.

The Euro

The Euro has declined against the majority of its peers after the Purchasing Manager Index for Spain showed that the nation has now declined for two years straight. The PMI for the whole Eurozone edged up from 46.5 to 46.7 a slight improvement, but the region still remains contracting. The market is also waiting to see whether the European Central Bank will cut interest rates.

Australian Dollar

The ‘Aussie’ has fallen sharply against its peers, hitting a two-month low against the Euro and Pound as renewed concerns over global growth sent investors running for government bonds. The currency came under pressure due to disappointing data from China.


New Zealand Dollar

The ‘Kiwi’ has declined sharply after being sold off by investors worried over the slowdown in global growth. A combination of weak US employment data and China’s PMI sent the currency tumbling. The currency was also weighed down by a decline in commodity prices, most notably a fall of 10.2% in whole milk powder.

Canadian Dollar

The ‘Loonie’ has edged closer to parity with the US Dollar after demand for the currency was boosted following a plethora of negative economic data and depressed commodity prices.

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