Foreign Currency Exchange Rate Predictions For GBP EUR USD NZD

June 6, 2013 - Written by James Fuller

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

The POUND STERLING has performed reasonably on the day following the Bank of England’s announcement that, as expected, it was maintaining its current monetary policy stance. This morning’s Halifax House Price survey showed that UK property prices increased by a better than expected 2.6% during the three months to the end of May. The outlook for the Pound is NEUTRAL TO POSITIVE ahead of tomorrow morning’s trade figures.

The EURO came under some selling pressure ahead of the European Central Bank’s latest policy decision which was announced at lunch time. The move against the single currency sent the GBP EUR exchange rate up to as high as 1.1790 earlier on. Although Mario Draghi announced in his post-decision press conference that his Bank had downgraded it 2013 eurozone GDP growth forecast, he notably omitted to mention the prospect of negative interest rates for the euro area. The single currency is expected to trade on a NEUTRAL footing moving forward.

The US DOLLAR has given up ground against most of the other sixteen most-actively traded currencies today. Only a week ago, market babble was all about when the Federal Reserve would begin winding down its Quantitative Easing programme. However, weak US data in the meantime has led investors to fear the worse for tomorrow’s US Non-Farm Payroll data, dampening talk of a reduction in QE. The Greenback is expected to trade with a NEGATIVE bias ahead of tomorrow’s US jobs data and the current GBP USD exchange rate is 1.5462.

The NEW ZEALAND DOLLAR has slumped to its lowest level against Sterling since 4th January during today’s trading session. The upward move for GBP NZD to 1.9497 was driven by continued fears that the Reserve Bank of New Zealand is actively intervening in the global currency markets in order to weaken the Kiwi. Yesterday’s disappointing US employment data has also weighed heavily on the New Zealand tender. The Kiwi is expected to trade on a NEGATIVE footing in the near term.

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