Pound Sterling Euro Exchange Rate Forecast, US Dollar & New Zealand Dollar Predictions

September 16, 2016 - Written by James Fuller

STORY LINK Pound Sterling Euro Exchange Rate Forecast, US Dollar & New Zealand Dollar Predictions

Pound to Euro (GBP EUR) US Dollar (GBP USD) Exchange Rates Weakened by BoE Decision

Pound Sterling (GBP) exchange rates shipped a little support during yesterday’s afternoon session following the Bank of England monetary policy announcement, with the currency falling vs peers like the Euro (GBP EUR) and US Dollar (GBP USD). The statement which accompanied the ‘no change’ decision effectively pre-announced another interest rate cut from the BoE before Christmas and the outlook for Sterling is now NEUTRAL TO NEGATIVE.

Neutral Negative Outlook Predicted for Euro (EUR) Exchange Rate Forecasts

The prospects for Euro (EUR) exchange rates were helped a little by August’s whole of Eurozone inflation figures, published yesterday morning. The CPI data revealed a healthy month-on-month increase of 0.1% in the pace of euroland price rises – a significant improvement from July’s showing of -0.6%. However, July’s Trade Balance numbers were a disappointment and the consensus view amongst analysts is that the shared currency will perform on a NEUTRAL TO NEGATIVE basis moving forward. The GBP EUR exchange rate stands at 1.1740.

Presidential Election Expected to Impact Pound US Dollar (GBP USD) Currency Trading

US Dollar (USD) exchange rates face a brace of major medium term risks; the first dangerous scenario would see wildcard Republican candidate Donald Trump win the US Presidential election in early November, while the second would see the Federal Reserve delay its next interest rate hike until next year. Analysts forecast that the Buck will trade on a NEUTRAL TO NEGATIVE bias moving forward and the Pound Dollar exchange rate stands at 1.3207 GBP USD.

New Zealand GDP Supports NZD, Sends Pound New Zealand Dollar Exchange Rate Lower

New Zealand Dollar (NZD) exchange rates were helped by Q2 Gross Domestic Product data, published late on Wednesday night. The official data revealed that the Kiwi economy expanded by a highly respectable annualised 3.6% during the three months leading up to the end of June. New Zealand’s future economic performance hinges on continued strong levels of demand from China for its exports, and with evidence growing that the Chinese slowdown is ongoing, the outlook for the Kiwi Dollar is NEUTRAL TO NEGATIVE. The GBP NZD exchange rate sits at 1.8080.

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