Foreign Currency Exchange Rate Predictions For GBP EUR USD NZD

Modified: Monday, 20 May 2013 13:59 BST - Written by Tim Boyer

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

This morning’s report from the Ernst & Young Item Club which found that the real cost to the UK economy of high levels of inflation since 2010 has been £10bn. The news has held back the POUND STERLING on the day. The latest Rightmove House Price survey, released overnight, has done little to improve investor sentiment towards Sterling. The Pound is expected to trade on a NEUTRAL TO NEGATIVE bias in the lead-up to tomorrow’s UK CPI Inflation data for April.

The EURO has performed reasonably in the global currency markets during today’s session in spite of this weekend’s massive anti-austerity protests in Italy. The best estimates were that some 100,000 protestors took to the streets to appeal to the nation’s leaders to ditch plans for spending cuts and tax hikes. The scenes could weigh heavily on the minds of investors holding euros during this week, thanks to a paucity of eurozone data releases. The outlook for the single currency is NEUTRAL. The current GBP EUR exchange rate stands at 1.1829.

The US DOLLAR has given up a little ground against Sterling today, causing the Pound to US Dollar exchange rate (currency : GBP USD) to accumulate to 1.5208. The main event this week for investors holding the Buck comes on Wednesday evening when the minutes of the most recent Federal Reserve Open Market Committee meeting are published. If they include any hint that policy members are looking at paring down the US Quantitative Easing programme, then expect the Greenback to make a comeback. The USD is expected to trade on a NEUTRAL TO POSITIVE footing in the short term.

The NEW ZEALAND DOLLAR has outperformed all of the other sixteen most-actively traded global currencies so far today. A generalised firming of worldwide commodities prices following their recent losing streak has assisted the Kiwi and rumours that Wednesday’s US Federal Reserve FOMC minutes will hint that America’s QE programme is here to stay for the timebeing have further assisted the NZD. The current GBP ZND exchange rate stands at 1.8645 and the outlook for the Kiwi is NEUTRAL to positive.

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