Pound, Euro, US Dollar +and NZ Dollar Forecasts - Latest Exchange Rate Predictions For GBP EUR USD & NZD

September 29, 2014 - Written by John Cameron

STORY LINK Pound, Euro, US Dollar +and NZ Dollar Forecasts - Latest Exchange Rate Predictions For GBP EUR USD & NZD

Leading currency analysts set out their foreign exchange rate forecasts for the Pound Sterling (GBP) vs euro (EUR), US Dollar (USD) and New Zealand Dollar (NZD) exchange rates below.

The POUND STERLING (currency:GBP) has put in a steady performance over the past seven days.

Its failure to kick-on following the previous week’s ‘No’ vote to independence from Scotland is attributable to continued concerns regarding the effect which increased devolution of powers away from Westminster and to the regions might have on the UK economy.

With Britain’s deficit remaining at historically heightened levels, the short term outlook for the Pound is NEUTRAL.

The EURO (currency:EUR) remains heavily out of favour with market participants. A vast majority of retail investors holding a position continue to be ‘short’ on the single currency and this position is unlikely to alter any time soon.

Tomorrow morning’s whole of eurozone inflation numbers will be central to the euro’s near-term prospects. Euro-holders will be desperately hoping that they surprise the market and show at a higher level than the expected 0.4%.

Anything lower than this and the single currency is forecast to perform with a NEGATIVE bias. The GBP EUR exchange rate stands at 1.2802.

The US DOLLAR (currency:USD) staged a concerted comeback against Sterling during the final two sessions of last week.

Friday’s US Gross Domestic Product data, which showed that the vast American economy is expanding at a hefty annualised rate of 4.6% helped to cancel out the negative effect of the previous day’s disappointing Durable Goods Orders figure.

This afternoon’s US Personal Consumption numbers are the next risk event of note for the Buck; in the meantime expect a NEUTRAL TO POSITIVE performance from the American tender. The GBP USD exchange rate sits at 1.6238.

The NEW ZEALAND DOLLAR (currency:NZD) continues to be weighed-down by comments from the Reserve Bank of New Zealand Governor Graeme Wheeler last Thursday stating that the current strength of the Kiwi is ‘unjustifiable and unsustainable’.

Share markets appear to have steadied themselves following the hefty losses which they incurred during the first half of last week, making a near-term improvement likely for the Kiwi.

Look for the NZ Dollar to perform on a NEUTRAL TO POSITIVE footing in the short-term; the GBP NZD stands at 2.0626.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts