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Pound Sterling Exchange Rate Forecast vs EUR USD NZD

August 9, 2016 - Written by John Cameron

BoE Interest Rate Forecast Could Trigger Further GBP to EUR, USD, NZD Exchange Rate Losses



The POUND STERLING (currency : GBP) remains in grave danger of recording further near-term losses against the other sixteen most actively traded global currencies this week. Last week’s suggestion from the Bank of England (BoE) that it may consider further interest rate cuts and more Quantitative Easing later in the year if economic conditions merit such a move has hurt Sterling. With no further tier one data sets out of the UK this week, the Bank’s words are expected to weigh heavily on the Pound. The outlook for the UK unit is NEGATIVE.

Euro (EUR) Supported by Sturdy Eurozone Data



A brace of positive economic statistics from the euroland helped the EURO (currency : EUR) during yesterday’s trading session. Stronger than anticipated German Industrial Production figures for June and an encouraging Sentix Eurozone confidence survey provided the shared currency with a fair wind. However, continued fears about the creditworthiness of Italy’s banking sector and the perennial problem of Greece are forecast to limit any gains for the shared currency which trades at 1.1770 GBP EUR against the Pound.

USD Forecast: US Dollar on a Neutral Footing Following NFP Report



The US DOLLAR (currency : USD) continues to outperform the world’s other leading tenders. However, with futures markets pointing to a majority chance that the Federal Reserve will leave US interest rates at their current level until into next year, some analysts feel that the Buck is now overvalued. Last week’s go-ahead US jobs numbers mean the Greenback is unlikely to give up much ground in the short term, but the US unit is now forecast to trade on a NEUTRAL footing heading into Autumn. The GBP USD exchange rate stands at 1.3040.

The latest Chinese trade data, published during the early hours of yesterday morning, is forecast to curb the level of support for the NEW ZEALAND DOLLAR (currency : NZD) against the Pound in the short-to-medium term. The data, which pointed to a hefty 12.5% year-on-year contraction in the value of shipments into China during July, spells bad news for New Zealand’s many exporters. The outlook for the Kiwi Dollar is now NEUTRAL and the GBP NZD exchange rate stands at 1.8265.
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