Exchange Rate Forecast: Pound Sterling, Australian Dollar, NZ Dollar and US Dollar

March 9, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecast: Pound Sterling, Australian Dollar, NZ Dollar and US Dollar

Wednesday Data Crucial for Pound Sterling Forecast

The POUND STERLING (currency:GBP) put in a patchy performance against the other major global tenders as last week drew to a close.

The UK unit climbed sharply against the euro, while dropping dramatically against the US Dollar.

Wednesday’s UK data is likely to determine the performance for the Pound this week – look out for a strong set of domestic Industrial and Manufacturing Production data to support Sterling.

In the meantime, analysts forecast that the Pound will perform on a NEUTRAL TO POSTIVE footing against the other majors.

Australian Dollar Outlook Deteriorates

The AUSTRALIAN DOLLAR (currency:AUD) enjoyed a boost when the Reserve Bank of Australia decided against a loosening of its monetary policy last Tuesday.

However, with Friday’s American jobs numbers suggesting that the Federal Reserve may have to look to increase the cost of borrowing in the States sooner rather than later, the Aussie could struggle this week.

The Aus Dollar exchange rate forecast is therefore NEUTRAL TO NEGATIVE.

NZ Dollar-Watchers Await RBNZ Decision

This could prove to be a big week for the NEW ZEALAND DOLLAR (currency:NZD).

The consensus amongst analysts is that the Reserve Bank of New Zealand will opt to maintain its Official Cash Rate at 3.50% on Wednesday night.

However, disappointing Chinese import data, published during the weekend close, suggests that the RBNZ may have to countenance a surprise rate cut.

The Kiwi is forecast to trade with a NEUTRAL TO NEGATIVE bias in the near term.

US Dollar Forecast Improves

Support for the US DOLLAR (currency:USD) surged when the Asian markets re-opened for business last night.

Last Friday’s monthly American jobs data, which once again thrashed expectations, suggest that it will not be long before American economic participants have to endure an interest rate hike.

With the impression persisting that the US economy is well ahead of the curve, the forecast for the Greenback is POSITIVE.

Exchange Rates Today:

The Pound to Australian Dollar exchange rate converts +0.2 per cent higher at 1 GBP is 1.95417 AUD.
The Pound to Canadian Dollar exchange rate converts +0.28 per cent higher at 1 GBP is 1.90328 CAD.
The Pound to Swiss Franc conversion rate is +0.13 pct higher at 1.48464 GBP/CHF.
The Pound to Euro exchange rate today is converting -0.14 per cent lower at 1.38662 GBP/EUR.
The Pound to New Zealand Dollar exchange rate today is converting +0.04 per cent higher at 2.04598 GBP/NZD.
The Pound to US Dollar exchange rate converts +0.33 per cent higher at 1 GBP is 1.51074 USD.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts