Today's FX Outlook for British Pound Sterling vs NZD, Euro & Canadian Dollar Exchange Rates - GBP/EUR at Best Level This Week

June 12, 2015 - Written by John Cameron

STORY LINK Today's FX Outlook for British Pound Sterling vs NZD, Euro & Canadian Dollar Exchange Rates - GBP/EUR at Best Level This Week

GBP Could Gain on AUD, NZD, EUR if UK Inflation Rises

A lack of market-moving data saw the Pound Sterling (GBP) exchange rate fluctuate on Monday, but the GBP/AUD, GBP/NZD and GBP/EUR pairings could all advance tomorrow if the UK's Consumer Price Index confirms economists' expectations for an annual figure of 0.1%, up from -0.1% in April. However, if the UK actually remained in deflation territory in May the Pound could plummet on Tuesday.

Earlier...

Pound Sterling Exchange Rate Hits Best Weekly Level against Euro Despite BoE Interest Rate Hike Expectations

The POUND STERLING (currency:GBP) has recorded decent gains against most of the most liquid global currencies during the past 24hrs. Britain’s current bout of deflation has been discounted by the Bank of England as a temporary phenomenon and Governor Mark Carney’s prediction that inflation of 2.0% may be a feature of the UK economy again this side of Christmas is likely to prop-up the Pound into the medium term. Analysts forecast that the UK unit will trade with a NEUTRAL TO POSITIVE bias moving forward.

The British Pound to Euro currency pair was trending in the region of 1.3820 today

New Zealand Dollar Exchange Rate Plummets, NZD Pressured Lower by RBNZ Interest Rate Decision

The NEW ZELAND DOLLAR (currency:NZD) was outperformed by all of the other sixteen most actively traded global currencies during yesterday’s session. The shift out of the Kiwi was driven by the Reserve Bank of New Zealand’s surprise Wednesday night decision to trim its Official Cash Rate by 25 basis points is likely to anchor support for the New Zealand tender for months to come. A rapid resolution to Greece’s prolonged debt negotiations with its creditors would be likely to improve risk appetite, helping the Kiwi, but this apart, the outlook for NZD is now NEGATIVE. The Pound Sterling New Zealand Dollar exchange rate stands at 2.2175.

The GBP/NZD exchange rate was trending in the region of 2.2262 - up 0.6% on the day

Greek Bailout Comments See Euro to Pound, Euro to US Dollar Exchange Rates Fall

The EURO (currency:EUR) was hampered during yesterday’s session by more comments from eurogroup policymakers suggesting that Athens and Brussels remain poles apart in their ongoing debt negotiations. Greece has until the end of the month to secure further bailout funding or default on over €1.5bn worth of debt repayments to the International Monetary Fund. Such a move would see investors shift out of euro-denominated assets en masse. The outlook for the shared currency remains firmly NEGATIVE in the near-term and the GBP EUR exchange rate stands at 1.3780.

BOC Governor Causes Canadian Dollar (CAD) Exchange Rate Losses

Comments from Bank of Canada Governor Stephen Poloz during yesterday’s North American session could weigh down the CANADIAN DOLLAR (currency:CAD) moving forward. The Canadian central bank supremo warned investors that recent local trade data has been ‘disappointing’ and confirmed that his Bank’s decision to pre-emptively trim its key lending rate was driven by the drop in global oil prices. The Loonie is forecast to trade with a NEUTRAL TO NEGATIVE bias and the GBP CAD exchange rate stands at 1.9075.

The GBP/CAD exchange rate achieved a day high of 1.9111

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TAGS: Canadian Dollar Forecasts Euro Pound Forecasts New Zealand Dollar Forecasts P Forecasts