Exchange Rate Outlook Forecast for Majors : GBP EUR USD AUD NZD CAD

April 19, 2011 - Written by John Cameron

STORY LINK Exchange Rate Outlook Forecast for Majors : GBP EUR USD AUD NZD CAD

POUND STERLING

Sterling was left to range trade during today’s session in the absence of any significant data releases. It gained some ground against the high-yielders due to a dip in risk sentiment, but for the most part, institutional investors sat on their hands ahead of the BoE April MPC Minutes tomorrow morning. NEAR-TERM OUTLOOK – NEUTRAL.


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

The Greenback endured a volatile day on the markets due to significant swings in risk sentiment. The Reserve Bank of Australia’s minutes, released overnight, predicted lower-than-anticipated growth, causing a dip in risk sentiment which hurt the Dollar. Structural fears persist for the USD following S&P’s gloomy assessment of America’s finances yesterday. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1393

Eurozone interest rate expectations are increasingly being determined by the unfolding European sovereign debt crisis. ECB board member Michael Bonello spoke stated today that any further tightening of monetary policy by the ECB might make it difficult for bail-out countries to achieve the growth levels required to pay off their debt. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5534

The Australian Dollar lost ground again during today’s session as appetite for risk in the markets remained subdued. Aussie losses were compounded by the minutes of the most recent Reserve bank of Australia policy meeting, which were released overnight, which stated that the bank considered the current level of interest rates to be ‘appropriate’ and that Q1 growth may be lower than expected due to adverse weather conditions in Australia. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0722

The New Zealand Dollar continues to suffer selling pressure in the currency markets following yesterday’s lower than expected NZ CPI Inflation figure. The credit swap market is now expecting the Reserve Bank of New Zealand to raise rates by only 54 basis points in the next 12 months. The Kiwi has also suffered downside because of the continued edging downwards of commodity prices. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5616

Today’s headline Canadian CPI Inflation figure considerably outstripped expectations, coming out at 3.3% versus an anticipated 2.8%. This represents a sizable rise on last month’s 2.2%. The numbers saw the CAD garner significant support in the market as investors amended their expectations for Canadian interest rates. However, the continued downward move for commodity prices could spell trouble for the CAD. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVIVE.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Canadian Dolla Forecasts