Weekly Exchange rate Forecasts for British Pound, Euro, Australian Dollar & New Zealand Dollar

April 13, 2015 - Written by John Cameron

STORY LINK Weekly Exchange rate Forecasts for British Pound, Euro, Australian Dollar & New Zealand Dollar

The POUND STERLING (currency:GBP) put in a poor performance during last week’s session in the global currency markets. Sterling was weighed down by a weak set of Industrial Production data and a disappointing survey of the domestic construction sector. However, the worst could still be to come for Sterling – many analysts believe tomorrow morning’s CPI inflation numbers will reveal that the British economy plunged into deflation last month. The outlook for the Pound is NEUTRAL TO NEGATIVE.

The EURO (currency:EUR) remains susceptible to heavy selling pressure at a moment’s notice thanks to continued fears that Greece may not formulate a suitable list of reforms which will enable it to qualify for further bailout funding. In spite of the awkward ongoing negotiations, which have seen Greece demand World War II reparations of almost €300bn from former foe Germany, a deal is by no means assured. In the meantime, the European Central Bank’s Quantitative Easing programme appears to be firming confidence amongst the euroland’s economic participants. Notwithstanding this fact, the outlook for the shared currency is NEGATIVE and the GBP EUR exchange rate stands at 1.3802.

The AUSTRALIAN DOLLAR (currency:AUD) pushed on against Sterling last week but this week’s session is by no means guaranteed to be such a positive one for the Aussie. Wednesday’s Chinese GDP data could be seminal; a pronounced drop off in activity levels in the world’s second most developed economy is anticipated. Meanwhile, Thursday’s Australian jobs figures will also be market-moving. The Aussie may have done all it is going to do for the time-being – the outlook for the Australian tender is NEUTRAL TO NEGATIVE and GBP AUD stands at 1.9072.

The NEW ZEALAND DOLLAR (currency:NZD) bullied Sterling during last week’s session. The Kiwi benefitted from the generalised impression that US interest rates will remain at their current ultra-low level for several more months. However, last Wednesday’s US Federal Reserve minutes showed that a fair minority of American policymakers are in favour of a US interest rate hike in June. Such a move would dampen support for the risk-driven Kiwi. Analysts forecast that the New Zealand unit will trade with a NEUTRAL bias moving forward. GBP NZD stands at 1.9438.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Australian Dollar Forecasts Currency Predictions Euro Forecasts Eur Forecasts