Foreign Exchange Rate Forecasts For Pound Sterling (GBP), Euro (EUR), Dollar (USD) & Rand (ZAR)

May 21, 2014 - Written by John Cameron

STORY LINK Foreign Exchange Rate Forecasts For Pound Sterling (GBP), Euro (EUR), Dollar (USD) & Rand (ZAR)

Foreign Exchange Rate Forecasts For Pound Sterling (GBP), Euro (EUR), Dollar (USD) & Rand (ZAR) - Yesterday’s news that British property prices had increased by a heady 8% during the twelve months to the end of March helped ensure that the POUND STERLING (currency:GBP) enjoyed another good session in the global currency markets. Higher than anticipated UK inflation data added to the encouraging news for the Pound meaning that analysts now forecast that it will trade with a NEUTRAL TO POSITIVE bias moving forward.

The EURO (currency:EUR) once again struggled in the markets yesterday as investors registered their alarm at data which pointed to a pronounced contraction in German producer prices. This afternoon’s whole of eurozone consumer confidence figure is the next risk event of note for the single currency, but also look for any surprises contained in tonight’s US Federal Reserve minutes to trigger some arbitrage movement for the euro due to the effect which it will have on the EUR USD exchange rate. The outlook for the euro is NEUTRAL TO NEGATIVE and the Pound Euro exchange rate stands at 1.2297 GBP/EUR.

The US DOLLAR (currency:USD) remained weak during yesterday’s session, sending the Pound Dollar exchange rate up to as high as 1.6865 GBP/USD. Comments from Federal Reserve Bank of New York President William Dudley predicting that the pace of eventual US interest rate rises will ‘probably be relatively slow’, hampered the Buck on the day. Any confirmation of this contained in this evening’s minutes of the Fed’s April meeting will come as another body blow to the Greenback, which is now expected to trade on a NEUTRAL TO NEGATIVE footing in the short term.

The SOUTH AFRICAN RAND (currency:ZAR) was the worst performing of the sixteen most actively traded global currencies during yesterday’s session. The move against the Rand was driven by the news that domestic platinum miner Lonmin had fired over 200 workers for unauthorised absences. A generalised ‘risk-off’ trading environment added to the downside for the Rand. The outlook for the South African tender is now NEUTRAL TO NEGATIVE and the Pound Rand exchange rate stands at 17.6010 GBP/ZAR.

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