End of Day Outlook - Prediction for Major Currencies : GBP USD EUR AUD NZD CAD

March 14, 2011 - Written by John Cameron

STORY LINK End of Day Outlook - Prediction for Major Currencies : GBP USD EUR AUD NZD CAD

POUND STERLING

The Pound has traded on the level against most of the majors today. Tomorrow’s consumer confidence survey and Wednesday’s unemployment figures may offer renewed direction, in the meantime, the levels on Sterling-based pairs are likely to be determined by events elsewhere. NEAR-TERM OUTLOOK NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6177

The Dollar has suffered on the currency markets today as the initial panic following Friday’s massive Japanese earthquake recedes. Oil prices also moved forward during European trading as analysts predict the Japan will return to economic growth by quarter 3 of 2011. This has further held back the Dollar. The FOMC are almost certain to maintain US interest rates at 0.25% later today. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1567

The Euro has made gains on the day following the announcement over the weekend that the ECB will be beefing up the funding and scope of its stability fund. Eurozone industrial production numbers released this morning came out in line with expectations, while the market continues to anticipate a Eurozone rate hike next month. NEAR-TERM OUTLOOK – POSITIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.6046

The Australian Dollar has lost ground against all of the sixteen most-traded currencies on the day today, as stock markets continue to edge downwards, signalling a drop off in global risk appetite. Fears persist that the Australian economy may suffer from the downturn in growth which is expected in Japan over coming months. NEAR-TERM OUTLOOK – NEGATIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.1913

The Kiwi Dollar has fared only marginally better than its Antipodean cousin, the Aussie Dollar, during today’s session. Partly this is a technical move as the Kiwi gives up the gains that it made during Friday’s session. However, the fundamentals of the New Zealand economy continue to provide concerns; many analysts predict future rate cuts as policy-makers attempt to avert a double-dip recession. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5772

The Canadian Dollar has come under heavy selling pressure during today’s session. After initially moving upwards through $114 per barrel, crude oil has lost ground following the start of the North American session, at one point trading down into the $112s. This downward move has been precipitated by fears over a possible nuclear meltdown in Japan and continuing unrest in Libya. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Canadian Dolla Forecasts