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Pound Sterling, Euro, US Dollar & NZ Dollar Foreign Currency Exchange Rates Forecast

July 29, 2014 - Written by John Cameron

Currency News UK - Pound Sterling, Euro, US Dollar & NZ Dollar Foreign Currency Exchange Rates Forecast: No significant UK data releases yesterday meant that the POUND STERLING (currency:GBP) was directionless for much of the session.

Sterling-watchers may have to wait until early on Thursday morning, when the latest Nationwide House Price survey of Britain’s property market is published, before the UK tender receives any fresh impetus.

In the meantime, analysts’ expectations that the Bank of England will be the first major global central bank to raise interest rates are likely to continue, meaning that the short-term outlook for Sterling remains NEUTRAL TO POSITIVE.

The EURO (currency:EUR) hardly moved against the Pound Sterling (GBP) or the Dollar (USD) during yesterday’s trading session.

Today brings little in the way of tier one data releases to alter this, however tomorrow brings a packed schedule of eurozone data releases.

The whole of eurozone Economic Confidence survey is due out shortly and analysts are anticipating that it will reveal a slight dip in sentiment from the euroland’s economic participants.

The main event for today as far as euro-watchers are concerned, comes in the form of this afternoon’s German inflation data; the single currency badly needs the data to show that the rate of European price rises has avoided another fall. The euro forecast remains NEGATIVE and the current Pound to euro exchange rate stands at 1.2640.

The US DOLLAR (currency:USD) drifted during yesterday’s session, but with the week which lies ahead, this situation is unlikely to prevail for long.

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Tomorrow evening’s Fed policy announcement, which is followed by Janet Yellen’s press conference, is highly likely to be market-moving.

With recent economic indicators from the States being of a generally positive tone, it may prove difficult for Yellen to pretend that the Fed will be able to delay a domestic interest rate hike for much longer.

If Friday’s US employment data once again beats expectations, then expect the Buck to trade with a NEUTRAL TO POSITIVE bias moving forward. GBP USD stands at 1.6985.

The NEW ZEALAND DOLLAR (currency:NZD) once again leaked support against Sterling yesterday as investors continued to factor-in the Reserve Bank of New Zealand’s comments of last week.

The market now expects the RBNZ to sit on its hands for the next few months and the Kiwi Dollar has leaked support in consequence.

The latest official survey of China’s vast manufacturing sector is due for publication in the early hours of Friday morning and hopes are high from Kiwi-holders for another encouraging showing.

China remains the number one export market for New Zealand’s plentiful exports of raw materials, so the release could mark a turning point. The Kiwi is expected to trade on a NEUTRAL footing moving forward and GBP NZD currently stands at 1.9874.

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