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British Pound Sterling Exchange Rate Outlook against EUR USD NZD

October 16, 2015 - Written by Toni Johnson

GBP Exchange Rate Forecast Improved by Labour Numbers



The POUND STERLING (currency : GBP) has proved to be the ‘comeback kid’ of the global currency markets during the past 48hrs. The UK unit was hit hard by domestic Consumer Price Index data, published on Tuesday morning, which showed that the British economy sunk back into deflation last month. However, yesterday morning’s UK labour market data, which showed that joblessness has reached its lowest level for seven years, helped fuel a pronounced improvement for the Pound. Analysts now forecast that Sterling will perform on a NEUTRAL footing moving forward.

Euro Predicted to Have Negative Outlook Now



The EURO (currency : EUR) underperformed the majority of the other sixteen most actively traded global currencies yesterday. A weaker than anticipated whole of eurozone Industrial Production figure dented support for the shared currency, while the euro was already under pressure this week following Tuesday’s poor German ZEW Sentiment Index. Meanwhile, the European Central Bank’s €65bn per calendar month Quantitative Easing Programme continues in the background. The outlook for the shared currency is NEUTRAL TO NEGATIVE and the GBP EUR exchange rate stands at 1.3506.

FX ALERT: US Dollar Exchange Rate Trends Lower after Sales Data



Support for the US DOLLAR (currency : USD) took a hit yesterday afternoon following the publication of a weaker than anticipated set of US Advance Retail Sales data for September. The official figures also revealed a downgrade to August’s counterpart figure and the fall-out saw investors push back their forecasts regarding the timing of the next US Federal Reserve interest rate hike. The outlook for the Greenback is now NEUTRAL TO NEGATIVE and the GBP USD exchange rate stands at 1.5445.

New Zealand Dollar Supported By RBNZ Rate Related Comments



The NEW ZEALAND DOLLAR (currency : NZD) put in a strong showing during yesterday’s session thanks to comments from Reserve Bank of New Zealand (RBNZ) Governor Graeme Wheeler doubting the effectiveness off further RBNZ interest rate cuts in boosting domestic economic activity. Wheeler’s suggestion that lower NZ interest rates would instead be more likely to cause the local property market to over-heat appears to suggest that the RBNZ’s rate-cutting cycle is now at an end. This, in combination with a lower likelihood of a US interest rate hike this year, means that the Kiwi is now forecast to trade on a NEUTRAL TO POSIIVE footing moving forward. The GBP NZD exchange rate stands at 2.2840.
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