Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, NZD, CAD

April 15, 2011 - Written by John Cameron

STORY LINK Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, NZD, CAD

POUND STERLING

A complete absence of tier one data releases in the UK during today’s session has left Sterling susceptible to drift against the other majors. The unexpected cooling off in price rises, which showed up in Tuesday’s Retail Sales figures, continues to weigh down Sterling. This month’s Rightmove House Price Survey is released on Sunday night and is likely to cause some Sterling movement at the start of next week’s session. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6316

The Dollar enjoyed support in the markets during today’s session, following a higher than expected CPI Inflation reading and strong manufacturing numbers. Chinese data released last night showed that the world’s second largest economy is showing signs of over-heating and further tightening of monetary policy may be required by the people’s Bank of China. This would lend further strength to the Greenback. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1300

The Euro continued to leak support against both the Pound and the Dollar today as fear increased over the sovereign debt situation in Greece. Greek bond spreads have widened to almost 20%. It now looks inevitable that the Greek government will be forced to default on its debt commitments, spreading contagion across the rest of the EU. Analysts are already asking how many other heavily indebted states will follow in Greece’s footsteps? NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5459

The next key risk event for the Australian Dollar comes in the early hours of Tuesday morning with the release Reserve Bank of Australia’s minutes from its most recent monetary policy meeting. The minutes will be closely-watched for any sign of the first alteration in interest rates since the turn of the year by Australia’s Central Bank. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0482

The New Zealand Dollar made further gains on the day, with the GBP NZD rate fast approaching its near-term low. From a technical perspective, there is likely to be significant market support for the pair at this multi-year low and it looks doubtful that the fundamentals of the NZ economy are strong enough to warrant a break down through this level. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5696

The Canadian Dollar has suffered some moderate losses against most of the other 16 most-traded currencies on the day. The CAD has come under selling pressure following the release of higher-than-expected Chinese Inflation figures last night which showed that food prices in particular are rising at a level the Chinese authorities are uncomfortable with. A Chinese interest hike now seems likely, which will cool demand for Canada’s key export – crude oil. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVIVE.

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