Weekly British Pound Sterling Exchange Rate Forecast against EUR USD NZD

October 26, 2015 - Written by Tim Boyer

STORY LINK Weekly British Pound Sterling Exchange Rate Forecast against EUR USD NZD

Deflation Concerns Hampered Pound Sterling (GBP) Exchange Rate Gains Last Week

The POUND STERLING (currency : GBP) recorded strong gains at the expense of several of the leading global tenders during the second half of last week.

However, the Pound’s sharp move lower of two weeks ago, which was triggered by the news that the domestic economy had slipped back into deflation, remains fresh in the minds of investors.

Tomorrow’s Q3 Gross Domestic Product figures have the potential to re-kindle these fears, meaning that the outlook for the Pound is NEUTRAL TO NEGATIVE.

Euro (EUR) Exchange Rate Softened Considerably on Dovish Draghi Speech

The EURO (currency : EUR) was hammered in late trading last week following European Central Bank President Mario Draghi’s assertion that his policy board will be ‘re-examining’ its €65bn per month Quantitative Easing programme in December.

Thursday’s German unemployment and inflation numbers represent the next tier one risk event of note for the single currency and if they provide any hint of a further weakening in the powerhouse Teutonic economy then the euro is forecast to trade on a NEGATIVE footing. The GBP EUR exchange rate stands at 1.3890.

US Dollar (USD) Conversion Rate Predicted to Strengthen on Hawkish Federal Reserve Policymakers

The US DOLLAR (currency : USD) is expected to steal the limelight in the global currency markets this week; the penultimate Federal Reserve policy decision of the year comes on Wednesday night and although a rate hike this month is considered unlikely, the Fed’s statement could trigger seismic tremors in global markets.

Any suggestion that, in spite of this month’s disappointing American jobs numbers, the Fed still considers a rate hike likely before the end of the year will send the Buck sharply higher.

The Greenback is forecast to trade on a NEUTRAL TO POSITIVE footing in the near-term and the GBP USD exchange rate stands at 1.5314.

NZD Exchange Rate Volatility Forecast on RBNZ Decision, Trade Data

Analysts have forecast pronounced price action for the NEW ZEALAND DOLLAR (currency : NZD) during the week ahead.

On the domestic data front, tonight’s Trade Balance data is likely to be seminal for the Kiwi and expectations are not high.

However, the New Zealand unit could recoup any overnight losses should the US Federal Reserve suggest on Wednesday evening that its will delay its next interest rate increase until 2016.

The outlook for the Kiwi is NEUTRAL TO NEGATIVE and the GBP NZD exchange rate stands at 2.2678.

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TAGS: American Dollar Forecasts Euro Forecasts New Zealand Dollar Forecasts Pound S Forecasts