Exchange Rate Forecasts 2014 - Pound, Euro, New Zealand Dollar and US Dollar - Future Currency Predictions (GBP EUR USD NZD)

August 14, 2014 - Written by John Cameron

STORY LINK Exchange Rate Forecasts 2014 - Pound, Euro, New Zealand Dollar and US Dollar - Future Currency Predictions (GBP EUR USD NZD)

Currency News UK presents the Pound Sterling, Euro, New Zealand Dollar & US Dollar 2014 / 2015 Exchange Rate Predictions and Future Currency Forecasts for GBP EUR USD NZD - Yesterday’s commentary from the Bank of England added to the impression that the POUND STERLING (currency:GBP) is near-term overbought. The UK central bank’s revelation that it was downgrading its growth and wage forecasts for the domestic economy hurt the Pound. The UK unit was already struggling following the International Monetary Fund’s assertion earlier in the month that it is overvalued by 10%. The outlook for Sterling is now NEUTRAL.

The current GBP forex positions are as follows:

The Pound Sterling to Euro exchange rate is trading down -0.08% at 1.24777 GBP/EUR.
The Pound Sterling to New Zealand Dollar exchange rate is trading down -0.14% at 1.96474 GBP/NZD.
The Pound Sterling to US Dollar exchange rate is trading up +0.03% at 1.66898 GBP/USD.

The EURO (currency:EUR) continued to trade in the 1.3300s against the US Dollar during yesterday’s session. Support for the single currency remained muted following Tuesday’s disappointing German ZEW Sentiment Index. Meanwhile, yesterday morning’s euroland data, which showed that regional Industrial Production is flat-lining, added to the downside pressure on the euro. Looking at the bigger picture, the single currency is likely to continue to struggle while Quantitative Easing remains a possibility from the European Central Bank. Analysts forecast that the euro will trade on a NEGATIVE footing moving forward.

The latest EUR FX levels are like this today:

The Euro to Pound Sterling exchange rate is trading up +0.08% at 0.80143 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading down -0.06% at 1.57460 EUR/NZD.
The Euro to US Dollar exchange rate is trading up +0.11% at 1.33757 EUR/USD.

The US DOLLAR (currency:USD) surged forward against Sterling yesterday, sending the GBP USD exchange rate down to a fresh near-term low of 1.6681. However, the shift lower for Cable was largely driven by a poor performance from the Pound. Yesterday afternoon’s tame US Advance Retail Sales numbers for July could put the brakes on the Buck’s near-term improvement against the Pound due to the effect they had on investors’ Federal Reserve interest rate expectations. The Greenback is expected to trade on a NEUTRAL TO POSITIVE footing moving forward.

The USD takes the following positions in the global forex markets:

The US Dollar to Euro exchange rate is trading down -0.11% at 0.74763 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading down -0.03% at 0.59917 USD/GBP.

Support for the NEW ZEALAND DOLLAR (currency:NZD) slumped during early trading yesterday following the release of a highly disappointing set of Chinese credit expansion figures. The New Yuan Loans data for last month came out at less than half the expected level, spelling bad news for the Kiwi due to New Zealand’s ongoing dependence on China as its number one export market. Continued fears that the Reserve Bank of New Zealand craves a weaker Kiwi mean that the outlook for the New Zealand tender remains NEUTRAL TO NEGATIVE.

Lastly, we look at where NZD is positioned against the key majors:

The New Zealand Dollar to Australian Dollar exchange rate is trading up +0.05% at 0.91097 NZD/AUD.
The New Zealand Dollar to Euro exchange rate is trading up +0.06% at 0.63508 NZD/EUR.
The New Zealand Dollar to Pound Sterling exchange rate is trading up +0.14% at 0.50897 NZD/GBP.
The New Zealand Dollar to US Dollar exchange rate is trading up +0.17% at 0.84947 NZD/USD.

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