Pound Sterling Exchange Rate Forecast: GBP/EUR, GBP/USD and GBP/NZD Exchange Rates & Predictions

March 24, 2015 - Written by John Cameron

STORY LINK Pound Sterling Exchange Rate Forecast: GBP/EUR, GBP/USD and GBP/NZD Exchange Rates & Predictions

The British POUND STERLING (currency:GBP) endured a torrid day in the markets, losing almost 1.5% of its value against the euro and a similar amount against the Australian Dollar.

Heavy hints from the Bank of England’s rate-setters suggesting that the next move for the Base Rate could be a downward one, held back Sterling in the day, but this week’s main event still lies ahead for the Pound.

February’s Consumer Price Index data has the potential to further would the UK unit if it shows that the British economy is facing a bout of deflation.

The outlook for Sterling is now NEUTRAL TO NEGATIVE.

Euro Exchange Rate Enjoys Temporary Respite

The EURO (currency:EUR) pushed ahead against both the Pound and the US Dollar on the day yesterday, in spite of an emergency meeting between Greece and Germany.

However, the move forward for the single currency is likely to prove ephemeral. At the moment, the euro is benefitting from the shift out of US Dollar and Sterling assets from investors, but when this works its way out fears over Greece and Quantitative Easing are likely to weigh down the shared currency.

The euro is forecast to trade with a NEGATIVE bias in the near-term and the GBP EUR exchange rate stands at 1.3677.

Dollar Exchange Rate Today: USD Falters on Fed Comments

The US DOLLAR (currency:USD)looks to have turned a corner against the other major currencies during the past week – and not in a good way.

On the face of it, US jobs data over the past twelve months has been spectacular, with over 200,000 new positions having been created in the world’s leading economy for twelve months on the trot.

However, the Fed still wants more and stated last Wednesday that there will be no US interest rate hike until they get it.

Expect the Buck to continue to trade on a NEUTRAL TO NEGATIVE footing while they wait to get it. GBP USD stands at 1.4882.

New Zealand Dollar (NZD) Exchange Rate Benefits from Positive Risk Sentiment

The NEW ZEALAND DOLLAR (currency:NZD) outperformed all of the other sixteen major global currencies on the day yesterday as appetite for risk flooded back into the market.

Last Friday’s record close for London’s FTSE 100 and Chicago’s S&P 500 illustrated the go-ahead mood amongst equities traders and this spread to the currency markets, where traders scrambled to buy-up risk-laden assets including the Kiwi.

The outlook for the NZD is now NEUTRAL TO POSITIVE and the GBP NZD exchange rate stands at 1.9573.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts