Exchange Rate Forecasts 2014 / 2015: Pound Sterling (GBP), Euro (EUR), Dollar (USD) & NZ Dollar (NZD)

October 28, 2014 - Written by John Cameron

STORY LINK Exchange Rate Forecasts 2014 / 2015: Pound Sterling (GBP), Euro (EUR), Dollar (USD) & NZ Dollar (NZD)

Currency News UK: Read the latest foreign currency exchange rate forecasts & predictions for the Pound Sterling vs the euro (currency:EUR), US Dollar (currency:USD) and NZ Dollar (currency:NZD) below.

The POUND STERLING (currency:GBP) enjoyed a much-needed fillip during early trading yesterday when the latest Confederation of British Industry Reported Sales survey printed at a higher than expected level.

The result adds to Sterling-holders hopes that the British economy may continue to expand at the 3.0%+ level which it is currently.

Look out for tomorrow morning’s domestic Mortgage Approval data to provide further evidence that the Bank of England’s limiting of riskier lending to UK consumers is working.

The Pound is forecast to trade with a NEUTRAL bias in the lead-up to this data.

The Pound to Euro exchange rate today is converting -0.19 per cent lower at 1.26689 GBP/EUR.
The Pound to New Zealand Dollar conversion rate is -0.25 pct lower at 2.03790 GBP/NZD.
The Pound to US Dollar conversion rate is +0.08 pct higher at 1.61361 GBP/USD.

Investor Sentiment Remains Euro Negative

Yesterday afternoon’s confirmation from the European Central Bank that it had purchased some €1.7bn worth of covered bonds as an opening salvo in its latest asset purchase scheme did little to shore-up support for the EURO (currency:EUR) during late trading.

The Pound euro exchange rate slipped a tad late on to trade down to 1.2680, but the suspicion amongst traders remains that the euroland’s reserve bank will have to do a lot more to stave off a damaging bout of regional deflation.

The outlook for the euro remains NEGATIVE.

US Dollars Leaks Support Ahead Of Fed Announcement

The US DOLLAR (currency:USD) lost its way a little during yesterday’s session as institutional investors eyeballed tomorrow evening’s Federal Reserve policy announcement.

The generalised shift out of Greenback-denominated assets on the day suggested that most market participants feel that the Fed will maintain its ‘low for a considerable time’ guidance on interest rates.

With some investors also talking-up the chances of a fourth tranche of QE from the US central bank, the Buck is predicted to perform on a NEUTRAL TO NEGATIVE footing in the near-term.

NZ Dollar Outperforms Other Major Currencies

The NEW ZEALAND DOLLAR (currency:NZD) outperformed almost all of the other sixteen most actively traded global currencies during yesterday’s session.

Tomorrow night’s Reserve Bank of New Zealand policy announcement will be defining for the Kiwi in the short term.

A rate hike is highly unlikely, but any negative comments from Reserve Bank of New Zealand chief Graeme Wheeler could erase the Kiwi Dollar’s gains of yesterday.

The New Zealand unit is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.

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