Gains Forecast for Pound Sterling Exchange Rate vs ADU NZD on Thursday

October 5, 2015 - Written by Tim Boyer

STORY LINK Gains Forecast for Pound Sterling Exchange Rate vs ADU NZD on Thursday

Below Forecast US NFP Report Sees GBP, USD, EUR Exchange Rates Fluctuate

Last Friday’s US employment market data provided investors with further evidence that the global economic recovery which was fueled by the ultra-loose monetary policy, which the world’s central banks followed in the aftermath of the 2008/09 financial crisis, is beginning to run out of momentum. Although the key economic release from the States pointed to a static overall rate of joblessness in the US, the job creation element, (considered a key leading indicator of future levels of unemployment Stateside), came in at a significantly lower level than had been anticipated.

Australian Dollar, New Zealand Dollar Conversion Rates Gain on Pared Federal Reserve Interest Rate Hike Bets

Equities markets, and the high yielding Commodity Dollars, recorded significant losses, but as the realisation dawned that the disappointing nature of the September US jobs numbers makes a tightening of monetary policy from the world’s premier central banks less likely, in the near-term at least, these losses were reversed. In the end, the broad ranging S&P 500 share index in the States ended Friday’s session 1.43% higher than its opening level; meanwhile, the Pound Sterling Australian Dollar and Pound Sterling New Zealand exchanges rates ending the week at 2.1537 GBP AUD and 2.3625 respectively.

Foreign Currency Exchange Predictions: Will GBP to AUD, NZD Exchange Rates Return to 2015 Best Levels?

The markets are likely to get a fresh steer on the chances of an interest rate increase this year in the world’s leading economy on Thursday evening, when the minutes of the US Federal Reserve’s September monetary policy meeting are published. The Pound Sterling (currency : GBP) is forecast to record renewed gains against the Australian Dollar (currency : AUD) and New Zealand Dollar (currency : NZD), on publication of these memos. Given that the Fed policymakers were, at the time of the meeting, unaware of the apparent softening in the US labour market which last Friday’s statistics revealed, most analysts predict that they will show that the party line of a rate hike before the end of the year was toed by almost all. Such a result could send GBP AUD, GBP NZD and GBP CAD back up towards their near-term highs.

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