Latest Exchange Rate Predictions Today - GBP, USD, EUR, AUD, NZD, CAD

March 22, 2011 - Written by John Cameron

STORY LINK Latest Exchange Rate Predictions Today - GBP, USD, EUR, AUD, NZD, CAD

POUND STERLING

This morning’s UK CPI inflation figures came in ahead of expectations at 4.4%, increasing speculation of a rate hike by the Bank of England sooner rather than later. The Public Sector Net Borrowing Requirement figure for February showed at a much bigger number than had been expected, meaning that there will be little room for expansion of spending plans in tomorrow’s Budget. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6378

The price of a Barrel of Brent Crude has once again gained on the day, hurting the Dollar and causing GBP/USD to break through to a new 14 month-high. EUR/USD is also close to a 14 month high, so from a technical perspective, the Dollar is teetering on the edge. A close above 1.4282 on EUR/USD, the world’s most liquid currency pair, would be massively bearish for the Greenback. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1529

A complete lack of data in the Eurozone today caused the Euro to trade within tight ranges against the other majors. Tomorrow’s Eurozone New Industrial Orders may have a limited effect on Eurozone interest rate expectations, but the most closely-watched risk event for the Euro tomorrow is the whole of Eurozone Consumer Confidence survey for March. NEAR-TERM OUTLOOK – NEUTRAL.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.6204

The Aussie has traded sideways against the majors today, picking up only 0.6% against the Pound. European and North American equities indexes struggled to gain any further forward momentum following their recovery of the early part of the week. The Australian Dollar mirrored their behaviour. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.2102

The Kiwi Dollar gained a small amount of ground against the majors during today’s session ahead of tomorrow night’s key GDP figure. Investors holding New Zealand Dollar-denominated assets will be alarmed to hear that the Japanese authorities have warned of further G7-backed action to weaken the Yen. The G7’s action at the end of last week caused considerable selling pressure on the Kiwi. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.6050

The Canadian Leading Indicators Survey came out slightly better than expected this afternoon, but the real headline-grabber was the Canadian Retail Sales Figure for January, which came out below zero as opposed to expectations of 1% growth. This has re-enforced fears that the real economy in Canada is not as robust as it should be given Canada’s strong position as a major exporter of commodities. NEAR-TERM OUTLOOK – NEUTRAL TO NEAGTIVE.

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