Exchange Rate Prediction for GBP EUR USD NZD

January 27, 2015 - Written by John Cameron

STORY LINK Exchange Rate Prediction for GBP EUR USD NZD

Pound Sterling Exchange Rate Investors Await UK GDP Data

The POUND STERLING (currency:GBP) traded sideways yesterday as investors focussed elsewhere. This morning’s UK Gross Domestic Product data could provoke price action for Sterling. Looking longer term, if Greece motions towards a break from the eurozone, then Sterling looks perfectly placed to hoover up a flow of funds out of euro-denominated assets. For this reason, the Pound is forecast to trade on a NEUTRAL TO POSITIVE footing moving forward.

QE Anchors Euro Exchange Rate

The EURO (currency:EUR) is in trouble. The single currency has been hit hard by last week’s larger than anticipated Quantitative Easing programme from the European Central Bank. Meanwhile, the situation in Greece, where the staunchly anti-bailout Syriza party now holds power, threatens to tip the single currency over the edge. The euro is forecast to trade with a NEGATIVE bias moving forward and GBP EUR sits at 1.3410.

GBP USD Exchange Rate Settles in the 1.4000s

The US DOLLAR (currency:USD) enjoyed another strong session during yesterday’s trading day. Continued sustained support for the Greenback saw the GBP USD exchange rate do a fair bit of business below the psychologically key 1.5000 threshold and investors may have to get used to seeing the pair changing hands in the 1.4000s if tomorrow evening’s Federal Reserve policy decision hints at a domestic interest rate hike sooner rather than later. The outlook for the Buck remains NEUTRAL TO POSITIVE and the GBP USD exchange rate stands at 1.5011.

Kiwi Languishes on Eurozone Fears

The NEW ZEALAND DOLLAR (currency:NZD) endured a torrid session yesterday, sending the GBP NZD exchange rate up to close to the 2.0400 threshold during late trading. A generalised unease regarding the potential effect which the new Syriza-led government in Greece may have on the political make-up of the eurozone held back the Kiwi on the day. Concerns remain that the Reserve Bank of New Zealand may be set to alter its policy tack tomorrow night, so the outlook for the Kiwi is NEUTRAL TO NGATIVE. GBP NZD stands at 2.0370.

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