British Pound Sterling FX Exchange Rate Forecast against EUR USD NZD

November 25, 2015 - Written by John Cameron

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

Pound Sterling Forecast for Neutral-Negative Exchange Rate Outlook

Dovish comments from Bank of England Governor Mark Carney yesterday suggesting that a domestic interest rate hike remains a long way off weighed down the POUND STERLING (currency : GBP). Investors holding the UK unit will be eyeing this afternoon’s Autumn statement from Chancellor George Osborne with some nervousness – a downgrading of the UK’s medium term GDP growth and inflation forecasts appears a live possibility from Britain’s Finance Minister. In the meantime, the Sterling outlook is NEUTRAL TO NEGATIVE.

Euro Rebounds Vs Pound, GBP-EUR Down from Best Rate

The EURO (currency : EUR) made a concerted comeback against the Pound yesterday, sending the GBP EUR exchange rate back down into the 1.4100s. The single currency was helped by official confirmation that the all-important German economy grew at almost 2.0% during the past twelve months. The suggestion from the Bank of England that an interest rate cut remains a possibility also rendered the European Central Bank’s current ultra-loose monetary policy less extreme in relative terms. GBP EUR stands at 1.4150 and the forecast for the shared currency is NEGATIVE.

Foreign Exchange News: US Dollar Supported by Fed Rate Hike Bets

The US DOLLAR (currency : USD) enjoyed a sustained burst of support yesterday afternoon as investors continued to factor-in a high chance that the US Federal Reserve will hike its headline interest rate next month. Futures markets now suggest that there is an almost 75% likelihood that American rates will be heading Northwards before Christmas. In the meantime, the Buck is expected to trade on a NEUTRAL TO POSITIVE footing moving forward. The GBP USD exchange rate stands at 1.5050.

Trade Data Predicted to Cause NZD Exchange Rate Movement

The NEW ZEALAND DOLLAR (currency : NZD) improved against the Pound Sterling by almost a percentage point yesterday, sending the GBP NZD exchange rate down to close to the 2.3000 threshold. The Kiwi will need a strong showing from tonight’s domestic export data in order to sustain this improvement; analysts forecast that the October figures will show that shipments out of NZ increased to NZD4bn. Anything short of this and the NZD is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward. The GBP NZD exchange rate stands at 2.3040.

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