Foreign Currency Forecasts For GBP EUR Exchange Rate & Outlook For AUD, NZD & USD

Published: Thursday, 16 May 2013 15:00 BST - Written by Tim Boyer

STORY LINK Foreign Currency Forecasts For GBP EUR Exchange Rate & Outlook For AUD, NZD & USD

A significantly weaker than anticipated set of US Initial Jobless Claims data, released a short time ago in the States, has triggered a renewed bout of selling pressure on the US DOLLAR, sending the Pound to US Dollar exchange rate (currency : GBP USD) up from its intraday low of 1.5193 back up to close to the 1.5300 level as New York braces itself for the opening bell.

The US labour market figure came as a double blow to the Greenback, revealing that the number of new unemployment benefit claimants hit a higher than anticipated 360,000 last week versus analysts’ expectations of a showing of 330,000. The data also brought a negative revision to the preceding week’s counterpart figure, bringing further bad news for the Buck. The outlook for the US DOLLAR is now downwardly revised to NEUTRAL.

Elsewhere, this morning’s whole of eurozone Consumer Price Index data came in slightly below expectations, confirming that the headline CPI measure of price rises in April had dipped from March’s 1.5% showing down to 1.1%. The figure gives the European Central Bank further leeway to ease monetary policy as 2013 progresses. For this reason, the forecast for the EURO moving forward is NEUTRAL TO NEGATIVE.

Meanwhile, the high-yielding AUSTRALIAN and NEW ZEALAND DOLLARS have given up significant ground against most of the other sixteen most-actively traded global currencies so far today. The GBP NZD exchange rate (currency : GBP NZD) has broken the 1.8700 level in spite of New Zealand Prime Minister John Key’s overnight assertion that the Reserve Bank of New Zealand did not have the capability to turn around the direction of the prevalent trend for the Kiwi. Investors did not believe him and moved out of NZD-denominated assets. Analysts’ prediction for the NEW ZEALAND and AUSTRALIAN DOLLARS moving forward is for more NEUTRAL TO NEGATIVE trading.

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