Pound Sterling (GBP) Exchange Rate Forecast versus EUR USD NZD

September 14, 2016 - Written by Toni Johnson

STORY LINK Pound Sterling (GBP) Exchange Rate Forecast versus EUR USD NZD

UK Inflation Sends Pound Sterling (GBP) Lower Vs Euro (EUR), US Dollar (USD) and New Zealand Dollar (NZD)

The outlook for POUND STERLING (GBP) exchange rates took a turn for the worse yesterday when August’s UK inflation figures came in below the level anticipated by analysts. Pound Sterling-holders will now fear the tone of the Bank of England’s rhetoric on Thursday, even if any alteration to domestic monetary policy is considered unlikely. Pound Sterling to Euro, US Dollar and New Zealand Dollar exchange rates are therefore forecast to perform on a NEUTRAL TO NEGATIVE footing in the near-term.

Euro Exchange Rate Outlook Could Turn Negative, GBP/EUR May Recover Losses

Meanwhile, demand for the Euro (EUR) fluctuated in response to the latest ZEW confidence reports.

September’s edition of the closely-monitored ZEW Sentiment Survey revealed an uptick in confidence levels amongst economic participants in the euroland. The EURO (currency : EUR) performed with credit against both the Pound and the US Dollar as a consequence. However, doubts persist regarding the robustness of the mainland European economy and if this morning’s whole of eurozone Industrial Production numbers disappoint, then the outlook for the shared currency will turn NEGATIVE. The GBP EUR exchange rate sits at 1.1728.

US Dollar Pound (USD/GBP) Exchange Rate Advances on December Fed Rate Hike Bets

The US DOLLAR (currency : USD) recorded sustained gains against Pound Sterling (GBP) yesterday, with the Pound Dollar (GBP/USD) exchange rate trading down into the 1.3100s doing afternoon trading. Although the money markets now price-in only a 15% chance of an American rate hike at this month’s Federal Reserve FOMC policy meeting, the consensus remains that the cost of borrowing Stateside will be increasing before Christmas. The outlook for the Buck is NEUTRAL TO POSITIVE and GBP USD stands at 1.3178.

Pound New Zealand Dollar (GBP/NZD) Exchange Rate Forecast to Maintain Neutral Bias

The NEW ZEALAND DOLLAR (currency : NZD) put in a moderate performance against a weakening Pound yesterday, with the GBP/NZD exchange rate holding its own thanks to a dip in global risk appetite. Tonight’s New Zealand Gross Domestic Product data for Q2 will provide the Kiwi with further direction –a year-on-year showing of above the expected 3.6% will be required to see the New Zealand unit strengthen. The Pound Kiwi Dollar exchange rate stands at 1.8130 and the outlook for the New Zealand tender is NEUTRAL.

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