Foreign Currency Exchange Rate Predictions For GBP EUR USD ZAR

May 27, 2014 - Written by John Cameron

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

The POUND STERLING has endured a mediocre day on the markets today, moving southward from its recent range-topping rates against both the US Dollar and the euro. A lower than anticipated set of UK mortgage approval figures, which pointed to a significant drop-off in the number of home loans being agreed by High Street banks last month hindered the UK tender. A relatively quiet week for British data releases suggests that the Pound may trade with a NEUTRAL TO NEGATIVE bias moving forward.

The EURO has clawed back a little of the ground which it lost against Sterling in recent days during today’s session. The move looks to have been technical in nature, with speculators taking profit following GBP/EUR’s break to a fresh 16-month high last week. The market now appears to be almost fully factoring-in a loosening of monetary policy from the European Central Bank at the start of next month; the increasing feeling that all the bad news is now out for the single currency means that the forecast for the euro is now NEUTRAL. The current GBP EUR exchange rate stands at 1.2332.

The US DOLLAR has registered decent gains against the other majors since today’s New York open. Stronger than expected domestic Durable Goods Orders data this afternoon helped the Buck’s fortunes, as did a markedly improved set of American house price figures for March, also out this afternoon. A tightening of monetary policy from the Federal reserve now appears to be not far off and consequently the Greenback is now expected to trade on a NEUTRAL TO POSITIVE footing in the short term. The GBP USD exchange rate stands at 1.6798.

The SOUTH AFRICAN RAND has leaked support against Sterling today following the publication of data earlier on which suggested that the South African economy contracted by 0.6% during the three months to the end of March. The larger than expected dip in activity levels was blamed on the ongoing woes in the mining sector of South Africa’s labour market, which continues to be blighted by industrial action. The fact that the dispute still goes unresolved is likely to weigh heavily on the Rand moving forward. The South African unit is now forecast to trade with a NEUTRAL TO NEGATIVE bias in the near-term. The GBP ZAR exchange rate stands at 17.5760.

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