Exchange Rate Forecasts: Pound Sterling, Euro, US Dollar and New Zealand Dollar

January 26, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecasts: Pound Sterling, Euro, US Dollar and New Zealand Dollar

Latest Pound Sterling to Euro, Dollar and New Zealand Dollar Exchange Rate Predictions and 2015 Forecasts

The POUND STERLING (currency:GBP) continues to benefit from the flow of funds out of the eurozone thanks to fears over the state of the region’s economy.

Tomorrow morning’s UK Q4 GDP data will determine the near-term performance of the UK unit; economists forecast a year-on-year showing of 2.8% - anything less than this and Sterling falls.

Analysts continue to predict that the Pound will perform on a NEUTRAL TO POSITIVE footing moving forward, providing the domestic economy avoids falling into a deflationary spiral.

Euro Exchange Rate Slumps on Greek Election Result

A convincing victory from the left-wing Syriza bloc in yesterday’s Greek election has piled the pressure on the EURO (currency:EUR) as this week’s session gets underway. The Pound Sterling euro exchange rate opened up sharply higher than last week’s closing level when trading recommenced last night and it’s almost certain that the single currency will endure further near term losses; analysts still retain a NEGATIVE outlook on the euro and the GBP EUR exchange rate stands at 1.3421.

Dollar Exchange Rate Benefits from Safe Haven Flows

The US DOLLAR (currency:USD) opened up on the front foot against Sterling when Asian trading got underway for the week last night. Political unease in the eurozone following Greece’s election promises to elicit a steady trickle of safe haven support for the Buck this week, while the US economy’s continued outperformance of the global market means that commentators remain NEUTRAL TO POSITIVE regarding the prospects of the Greenback. The Pound Sterling US Dollar exchange rate stands at 1.5002.

New Zealand Dollar Under Pressure

The NEW ZEALAND DOLLAR (currency:NZD) continues to be anchored by last week’s disappointing Fonterra Dairy Auction result. With central banks across the world continuing to loosen their respective monetary policies, suspicions are growing that the global economy may be heading back towards a zero percent interest rate policy. The potential for a complete erosion of the Kiwi’s yield advantage means that the outlook for the New Zealand tender is NEUTRAL TO NEGATIVE. GBP NZD stands at 2.0172.

Exchange Rates Today

The Pound to Australian Dollar conversion rate is -0.15 pct lower at 1.90062 GBP/AUD.
The Pound to Canadian Dollar exchange rate today is converting +0.26 per cent higher at 1.87291 GBP/CAD.
The Pound to Euro exchange rate is -0.69 pct lower with a conversion rate of 1 GBP equals 1.33636 EUR.
The Pound to New Zealand Dollar exchange rate is +0.44 pct higher with a conversion rate of 1 GBP equals 2.03027 NZD.
The Pound to US Dollar exchange rate converts +0.52 per cent higher at 1 GBP is 1.50715 USD.
The Pound to South African Rand exchange rate is +0.38 pct higher with a conversion rate of 1 GBP equals 17.22009 ZAR.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts