End of Day Foreign Currency Market Predictions : GBP EUR USD AUD NZD CAD

March 24, 2011 - Written by John Cameron

STORY LINK End of Day Foreign Currency Market Predictions : GBP EUR USD AUD NZD CAD

POUND STERLING

The Pound endured a shocking day on the markets, trading in the red across the board. The session began badly for Sterling with February’s Retail Sales figures coming out considerably worse than expected at -0.8%. Meanwhile, North Sea Oil Producers have warned that the windfall tax on their industry, announced in yesterday’s budget, will cause tens of thousands of job losses. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6093

A busy day of data releases in the States has seen considerable volatility for the USD currency pairs. The Greenback has gained over 0.5% against Sterling, but lost 0.75% against the Euro. US Durable Goods and Ongoing Claims figures disappointed this afternoon, raising questions about the strength of the real economy in the US and causing some support for the US Dollar via a flight to safety. NEAR-TERM OUTLOOK – NEUTRAL.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1353

The Euro has strengthened significantly against the other majors on the day today, in spite of continuing sovereign debt problems in Portugal. Leading Ratings Agency Fitch have downgraded Portugal’s Debt Rating, causing bond spreads to widen dramatically. On a more positive note, the market appears encouraged that Eurozone leaders are taking steps to shore-up European Sovereign Debts with their 48 hour summit, which began today. NEAR-TERM OUTLOOK – NEUTRAL.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5770

Another day of gains for the Aussie, as stock markets continue to claw back their post-Japanese earthquake losses. The Eurozone Debt Summit has also caused a pickup in risk sentiment, benefitting the Australian Dollar. In the absence of any Australian tier one data for the remainder of the week, there is little to divert the Aussie from its current uptrend. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.1458

A day of significant gains for the Kiwi, following a better than expected 4th Quarter GDP Growth figure which was released overnight. This allayed the fears of many analysts that the New Zealand economy was sliding towards a double-dip recession. These fears were suppressing the NZD, so further upside is to be expected. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5739

Oil prices show no sign of receding following their recent spike, which is causing significant support for the CAD. The market appears unperturbed by the upcoming Canadian general election. With no further data releases of not in Canada for the rest of the week, oil prices are the key to CAD levels. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVIVE.

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