Exchange Rate Forecasts for the British Pound, Swiss Franc, Euro and NZ Dollar

February 18, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecasts for the British Pound, Swiss Franc, Euro and NZ Dollar

Yesterday’s session brought a highly positive piece of news for investors holding the New Zealand Dollar (currency:NZD). The latest GlobalDairyTrade auction saw prices surge by over 10% in comparison to the sale of two weeks ago. The price of whole milk is the one to watch as far as Kiwi dairy farmers are concerned, as it represents New Zealand’s most lucrative export commodity; the fact that milk traded up to $3,272 per tonne, (an increase of almost 14%), came as a real bonus to Kiwi Dollar-holders.

The upshot saw the Pound Sterling New Zealand Dollar exchange rate drop from above the 2.0500 threshold during early trading down to an intraday low of 2.0322. If Greece agrees a bailout extension with the eurogroup, sending risk sentiment and levels of support for the New Zealand Dollar soaring, then the GBP NZD exchange rate may trend downwards towards last month’s low of 1.9243.

Elsewhere, the Swiss National Bank’s Chairman Thomas Jordan addressed the Université Libre de Bruxelles in Brussels late yesterday and his comments provided interesting reading for investors attempting to divine what ‘fair value’ is for the Swiss Franc (currency:CHF). The Pound Sterling Swiss Franc exchange rate plunged into the 1.1100s GBP CHF last month following the SNB’s shock decision to scrap the minimum floor of 1.2000 on EUR CHF which it had been enforcing for the previous three years. The top man at Switzerland’s central bank yesterday described his local tender as being ‘overvalued’ and predicted that this would correct itself in time. Jordan went on to made a thinly disguised effort to talk down the value of the Franc by forecasting that it will be difficult to estimate the level of Swiss GDP this year, but that it would certainly be lower than his bank’s December prediction.

The GBP CHF exchange rate improved to 1.4385 in the wake of these comments and analysts forecast further gains for the pair if Jordan continues to trash talk his tender. The only factor stopping GBP CHF recording even larger gains on the day was the morning publication of the lowest UK CPI inflation figures on record.

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TAGS: Currency Predictions New Zealand Dollar Forecasts Pound Ne Forecasts