Forecasts: Pound, Euro, US Dollar and NZ Dollar - Updated Exchange Rate Predictions, Comparison & Conversion

September 25, 2014 - Written by John Cameron

STORY LINK Forecasts: Pound, Euro, US Dollar and NZ Dollar - Updated Exchange Rate Predictions, Comparison & Conversion

Yesterday’s session has brought pronounced movement in the global currency markets and further volatile price action is forecast for the Pound Sterling (currency:GBP), euro (currency:EUR), US Dollar (currency:USD) and New Zealand Dollar (currency:NZD) today. Our leading analyst makes his predictions below...

The POUND STERLING (currency:GBP) has climbed against most of the other sixteen most-actively traded global currencies on the session. The UK unit appears to be benefitting from a shift of funds out of the eurozone from institutional investors factoring-in further near-term losses for the single currency. Looking ahead, there are no further tier one UK data releases due out this week, so the next risk event of note for Sterling-holders comes in the form of Monday morning’s British Mortgage Approvals data. Until then, expect the Pound to trade with a NEUTRAL TO POSITIVE bias.

- The Pound Sterling to Australian Dollar exchange rate is trading down -0.11 pct at 1.85337 GBP/AUD.
- The Pound Sterling to Euro exchange rate converts up +0.03 pct higher at 1.28076 GBP/EUR.
- The Pound Sterling to New Zealand Dollar conversion rate is up +0.46 pct at 2.06456 GBP/NZD.
- The Pound Sterling to US Dollar exchange rate is down -0.4 pct at 1.62653 GBP/USD.

Support for the EURO (currency:EUR)has slumped during this morning’s session following a speech from European Central Bank President Mario Draghi. The euroland’s central bank chief’s confirmation that his board is, ‘ready to use additional unconventional instruments within our mandate’ heaped the pressure on the single currency, sending the Pound euro exchange rate GBP/EUR up to a fresh 26-month high. Analysts agree that the outlook for the euro is NEGATIVE and the GBP EUR exchange rate stands at 1.2808.

The US DOLLAR (currency:USD) has pushed ahead against Sterling once more during today’s session. The Buck is benefitting from a shift in expectations from market participants regarding the timing of the next Fed interest rate hike. Most economists now believe that the US central bank will increase its key lending rate sooner than the Bank of England. Look for a strong showing from this afternoon’s domestic Durable Goods data to push the Greenback higher still against Sterling; tomorrow afternoon’s American Gross Domestic Product numbers are also likely to shape the near-term prospects for the Buck. Analysts forecast that the Dollar will perform on a NEUTRAL TO POSITIVE footing moving forward and the GBP USD exchange rate stands at 1.6316.

The NEW ZEALAND DOLLAR (currency:NZD) has suffered a torrid time of it during this morning’s session in the global currency markets. The Kiwi took a hit during the overnight Asian session following comments from Reserve Bank of New Zealand Governor Graeme Wheeler suggesting that the current historically strong relative value of the local unit was ‘unjustified and unsustainable’. The Kiwi could do with a weak set of US Durable Goods Orders data this afternoon to increase investors’ expectations of a continued ultra-loose monetary policy stance from the Fed. In the meantime, look for the NZD to trade with a NEUTRAL TO NEGATIVE bias; the GBP NZD exchange rate stands at 2.0496.

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