Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), US Dollar (USD) and New Zealand Dollar (NZD)

December 11, 2014 - Written by John Cameron

STORY LINK Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), US Dollar (USD) and New Zealand Dollar (NZD)

Read the latest future currency forecast for the Pound Sterling’s performance versus the euro (currency:EUR), US Dollar (currency:USD) and the New Zealand Dollar (currency:NZD) below.

UK Trade Gap Narrows, Sterling Gains

The generally encouraging tone of yesterday’s UK data helped the POUND STERLING (currency:GBP) trade into positive territory against nearly all of the other major global currencies.

Official figures suggesting that Britain’s trade deficit had narrowed to its lowest level for some seven months supported Sterling, while the UK unit continued to benefit from Tuesday’s NIESR growth estimate which printed at a healthy quarterly 0.7%.

The outlook for Sterling is NEUTRAL TO POSITIVE.

The Pound to Australian Dollar exchange rate converts +0.03 per cent higher at 1 GBP is 1.89024 AUD.
The Pound to Canadian Dollar exchange rate today is converting -0.47 per cent lower at 1.79720 GBP/CAD.
The Pound to Euro exchange rate is -0.31 pct lower at 1.25783 GBP/EUR.
The Pound to New Zealand Dollar exchange rate is -0.47 pct lower with a conversion rate of 1 GBP equals 2.00450 NZD.
The Pound to US Dollar conversion rate is -0.51 pct lower at 1.56664 GBP/USD.

Euro Exchange Rate Forecast: EUR Remains At Risk

Support for the EURO (currency:EUR) has remained relatively steady over the past 24hrs in spite of the continuing ‘will they / won’t they’ speculation regarding the European Central Bank’s stance on Quantitative Easing.

The crunch decision for the single currency will come at the start of next month, when the ECB makes its latest policy announcement; if the price of a barrel of crude oil continues to tumble in the lead up to this major risk event, then the euroland reserve bank may be forced into an all-out QE programme.

Until then, the euro is forecast to trade with a NEGATIVE bias. The current GBP EUR exchange rate stands at 1.2672.

Dollar Forecast to Climb as Oil Tumbles

The US DOLLAR (currency:USD) has continued its bull run against Sterling during recent sessions. A quick glance at the appropriate charts reveals a strong negative correlation between the price of a barrel of crude oil and the value of the Greenback. With the price of ‘black gold’ tumbling to its lowest level for 5 years this week, further near-term gains look likely for the Buck.

The expectation that the US Federal Reserve will be raising interest rates soon is likely to provide further fuel for the Dollar’s improvement since summertime.

Analysts now forecast a POSITIVE performance from the Buck moving forward, while GBP USD sits at 1.5691.

New Zealand Dollar Exchange Rate Forecast: NZD Could Improve as Chinese Inflation Slumps

The NEW ZEALAND DOLLAR (currency:NZD) has improved against the Pound since early trading this week. November’s CPI inflation numbers, published during the early hours of yesterday morning, printed at below analysts’ expectations, revealing that the pace of price rises in the world’s second most developed economy had reached a five year low.

The People’s Bank of China now appears highly likely to cut its key interest rate again – a move which would favour the export-driven New Zealand Dollar.

The outlook for the Kiwi is now therefore NEUTRAL TO POSITIVE and the GBP NZD exchange rate stands at 2.0326.

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