February 17, 2016 - Written by Tim Boyer
STORY LINK FX Foreign Currency News and Current Forecast for Pound Sterling (GBP), New Zealand Dollar (NZD) and euro (EUR)
Pound Sterling (GBP) Exchange Rate Outlook Neutral to Negative
Yesterday’s session brought pronounced price action for the world’s leading tenders. Read our latest foreign currency forecast for the Pound Sterling (GBP), New Zealand Dollar (NZD) and euro (EUR) below.
The POUND STERLING (currency : GBP) put in a ‘middle of the road’ performance against the other sixteen most actively traded global currencies yesterday.
Official data revealing that domestic inflation, as measured by the monthly annualised Consumer Price Index statistics, had increased to their highest level for 12 months in January, helped the Pound.
However, a lower than expected showing from the ‘Core Price Rise’ element of the figures, favoured by central bankers, held back Sterling on the day. Also Pound-negative was the fact that inflation has now remained below the Bank of England's (BoE) target for two whole years. The outlook for the UK unit is now NEUTRAL TO NEGATIVE.
New Zealand Dollar (NZD) Exchange Rate Outlook Neutral to Negative
A generalised ‘risk-on’ trading environment helped to limit the losses for the NEW ZEALAND DOLLAR (currency : NZD) during yesterday’s session as investor appetite for high-yield assets returned.
US equities markets climbed by the best part of 2% on the day, but the Kiwi still endured sustained selling pressure against the other major currencies following the publication of the latest fortnightly Global Dairy Trade auction results.
The drop of some 3.7% in the price paid by dairy collective Fonterra to its farmers for their whole milk powder, (NZ’s number one export), came as a blow to the New Zealand Dollar. Whole milk powder is now selling at its lowest price since last Summer, meaning that the Kiwi Dollar is forecast to trade on a NEUTRAL TO NEGATIVE footing in the short to medium term. The Pound Kiwi Dollar exchange rate sits at 2.1730 currently.
Euro (EUR) Exchange Rate Outlook Negative
A tame showing from February’s whole of eurozone ZEW Survey of economic sentiment held back the EURO (currency : EUR) yesterday.
The closely-monitored gauge of confidence showed a sharp drop from January’s result of 22.7, falling to 13.6. This reading will not have been missed by the euroland’s central bankers who convene on the first Thursday of next month to set their near-term monetary policy; an increase to the hefty €60bn which the European Central Bank currently allocates to its Quantitative Easing programme now appears likely, so the outlook for the shared currency is NEGATIVE.
The Pound euro exchange rate stands at 1.2830 GBP EUR.
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TAGS: Euro Forecasts New Zealand Dollar Forecasts Pound Sterling Forecasts