Exchange Rate Forecast for British Pound Sterling vs EUR USD ZAR

March 5, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecast for British Pound Sterling vs EUR USD ZAR

Bank of England Announcement Forecast to be a Damp Squib

The latest Bank of England (BoE) monetary policy announcement takes place later today and it is highly unlikely to provoke any significant movement for the POUND STERLING (currency:GBP). Tomorrow morning’s BoE/GfK Inflation Expectation report is more likely to be market-moving as far as Sterling-watchers are concerned. A pronounced drop from January’s showing of 2.5% is anticipated, meaning that the short-term outlook for the Pound is NEUTRAL TO NEGATIVE.


Euro Underperforms Again

The EURO (currency:EUR) once against put in a poor performance in the global currency markets yesterday. The fact that the single currency once again endured sustained selling pressure in spite of a better than anticipated set of January Retail Sales data from the euroland. The old market adage sates that ‘what should go up and doesn’t go up, can only come down’, meaning that analysts continue to forecast that the euro will perform on a NEGATIVE footing moving forwards. The GBP EUR exchange rate sits at 1.3580.


US Dollar Surges on Services Numbers

Support for the US DOLLAR (currency:USD) surged during yesterday’s afternoon session as market participants factored-in a stronger than anticipated ISM Non-Manufacturing survey. The release re-enforced the impression that America’s economy remains ahead of the curve compared to those of other developed nations. The main event this week for the Buck comes tomorrow afternoon with the publication of February’s Non-Farm Payrolls data which is once again expected to please. Commentators therefore predict that the Greenback will perform on a NEUTRAL TO POSITIVE footing in the near-term. GBP USD is currently at 1.5260.


Rand Weak on Central Banker’s Comments

The SOUTH AFRICAN RAND (currency:ZAR) was sold off during yesterday’s trading session in the currency markets as investors priced-in comments from Deputy South African Reserve Bank Governor Francois Groepe. The Pretoria policymaker described levels of economic growth in the euroland as ‘disappointing’, piling the pressure on the Rand. The potential for a flare-up in tensions on the Eastern edge of Ukraine remains and this factor is likely to subdue support for the Rand moving forward. The outlook for the South African unit is now NEUTRAL TO NEGATIVE and the GBP ZAR exchange rate stands at 18.0200 GBP ZAR.

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