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

April 20, 2011 - Written by John Cameron

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

POUND STERLING

The Pound has lost significant ground against all of the majors today, with the exception of the US Dollar, during today’s session following the release of the Bank of England MPC Minutes for its April meeting. The Minutes were of a dovish tone, stating that UK economic data over the last month ‘has probably been to the downside’. A UK rate hike now looks a long way off. NEAR-TERM OUTLOOK - NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6402

The Dollar is the only major to have performed as badly as Sterling in the markets on the day, with EUR/USD rising to its highest level since January, 2010. S&P’s downgrading of their assessment of the future prospects for the US economy continues to suppress the Greenback, with many analysts questioning the Dollar’s continuing viability as the world’s reserve currency of choice. NEAR-TERM OUTLOOK – NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1304

ECB board member Lorenzo Bini Smaghi commented today that the ECB was pursuing monetary policy from two years ago, which was no longer appropriate for the current economic climate. He is the latest in a line of ECB Board Members to call for a tightening of Eurozone monetary policy in order to cool rising prices in the single economic area. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5366

The Aussie has powered to a new record high against its US contemporary during trading today. The move was partially driven by figures which were released during last night’s Asian session, showing that Australia is enjoying far better-than-anticipated terms of trade than analysts had expected. The figures have led to renewed speculation of an RBA rate hike. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0584

The New Zealand Dollar has enjoyed a day of gains, as it was pushed to new nearterm highs against a raft of currencies. The Kiwi traded above USD0.80 against the USD for a brief period earlier today and the post Kiwi-float record for NZD/USD of 0.8213 is now in sight, as risk sentiment in the markets continues to move forward. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5634

Figures released earlier today showed that demand for Crude Oil in the US is higher than analysts had anticipated. Data released by the US Energy Department showed a drop-off in US oil stockpiles, which is good news for the CAD as the US is Canada’s leading export market. Increasing evidence that the global recovery is picking up pace has also assisted the CAD. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVIVE.

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