Pound Sterling Weekly FX Outlook versus EUR AUD NZD

November 3, 2015 - Written by John Cameron

STORY LINK Pound Sterling Weekly FX Outlook versus EUR AUD NZD

Speculation of Dovish BoE on Thursday Weighed on Pound Sterling (GBP) Gains Yesterday

The strong improvement for the POUND STERLING (currency : GBP) yesterday morning fizzled out as the day progressed.

October’s Purchasing Managers Index survey of the British manufacturing sector, published early in the European session, had helped Sterling by showing at well above analysts’ estimates.

However, investors’ concerns that the Bank of England might strike a dovish tone in its latest monetary policy statement on Thursday weighed down the Pound.

The outlook for the UK unit is NEUTRAL TO NEGATIVE.

GBP to EUR Conversion Rate Forecast to Push Above 1.40

The EURO (currency : EUR) recouped some of its recent losses against Sterling during late trading yesterday.

Last week’s eurozone Consumer Price Index numbers, which confirmed that the region’s economy had narrowly escaped deflation, continued to help the shared currency, however the euro is unlikely to enjoy any sustained support while the European Central Bank’s threat of further Quantitative Easing hangs over it.

The outlook for the euroland’s tender is NEGATIVE and the GBP EUR exchange rate stands at 1.3880.

GBP to AUD Exchange Rate Trading around 2.1456 Today

The AUSTRALIAN DOLLAR (currency : AUD) benefitted from last night’s decision from the Reserve Bank of Australia (RBA) to maintain its cash rate at its current level of 2.0%.

However, the RBA’s assertion that ‘further easing’ is likely may mean that these short term gains against the other major global currencies will prove ephemeral.

The next risk event of note for the Aussie is Friday’s US jobs report – a weak showing from the job creation data will help.

In the meantime, the Australian unit is forecast to trade on a NEUTRAL TO NEGATIVE footing, while GBP AUD trades at 2.1456.

GBP to NZD Exchange Rate Trading around 2.2949 Today

The near term prospects for the NEW ZEALAND DOLLAR (currency : NZD) hinge on tonight’s local labour market data.

Analysts forecast that the figures will reveal that the overall level of Kiwi joblessness increased from 5.9% to 6.0% during the three months to the end of September.

Such a result would increase the clamour for the Reserve Bank of New Zealand to cut its Official Cash Rate again before the end of the year.

For this reason, the outlook for the Kiwi remains NEGATIVE and the GBP NZD exchange rate stands at 2.2949.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Euro Forecasts Euro Pou Forecasts