Pound Sterling US Dollar Exchange Rate Forecast, EUR NZD Outlook

June 16, 2016 - Written by John Cameron

STORY LINK Pound Sterling US Dollar Exchange Rate Forecast, EUR NZD Outlook

Pound Sterling Outlook Neutral to Negative

The POUND STERLING (currency : GBP) was heavily downsold during early trading today, sending the GBP EUR exchange rate Southwards to the 1.2500 threshold.

The Bank of England (BoE), announced at midday that it will be maintaining its current monetary policy stance, but its warning that next week’s domestic EU Membership referendum is the ‘largest immediate risk’ facing the British economy could suppress support for Sterling in the short term.

The outlook for the Pound is NEUTRAL TO NEGATIVE.

Euro Outlook Neutral to Negative

Only UK voters will get to cast a ballot in next week’s European Union Membership Referendum. However, judging by the heavy losses for the euroland’s stock markets this afternoon, the EURO (currency : EUR) could suffer as much as the Pound in the event of a vote for ‘Brexit’.

This morning’s whole of eurozone Consumer Price Index data for May, which confirmed that continental Europe remains in the thrall of deflation, added to the shared currency’s woes and the euro is now forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The GBP EUR exchange rate stands at 1.2590.

US Dollar Outlook Neutral to Positive

The US DOLLAR (currency : USD) has enjoyed sustained support on the day today following yesterday evening’s relatively upbeat message from the US Federal Reserve.

A strong set of US Retail Sales numbers, also out yesterday, has added to the positivity enveloping the Buck, while this afternoon’s US inflation data which showed that year on year American price rises stand at 2.2% also helped.

The US unit is now forecast to trade on a NEUTRAL TO POSITIVE footing moving forward.

The GBP USD exchange rate stands at 1.4021.

New Zealand Dollar Outlook Neutral to Negative

The NEW ZEALAND DOLLAR (currency : NZD) took a hit late yesterday when the latest GlobalDairyTrade auction results showed another weakening in the price of New Zealand’s number one export - Whole Milk Powder.

Another duff day for global share prices has increased concerns regarding the New Zealand unit, which remains heavily risk-sensitive.

The outlook for the Kiwi Dollar is NEUTRAL TO NEGATIVE and the Pound NZ Dollar exchange rate stands at 2.0115 GBP NZD.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts