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

May 16, 2011 - Written by John Cameron

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

POUND STERLING

The Pound has suffered from drift in the markets today in the absence of any key data releases. Tomorrow’s UK CPI Inflation figure for April will be avidly watched by investors, with a print of above 4.1% in the headline annualised rate likely to elicit renewed support for Sterling. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6235

This afternoon’s US Empire Manufacturing survey came in a long way short of expectations, hurting the Dollar late in the European session. Federal Reserve Chairman Ben Bernanke’s comments later today will be closely-watched for any continuing Dollar-negative rhetoric. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1416

News of IMF Chief Dominic Strauss-Kahn’s arrest and detention in New York have diverted attention from today’s EU Finance Ministers’ Summit in Brussels. If European policy makers fail to outline a plausible road-map for dealing with EU sovereign debts, selling pressure on the Euro may continue. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5293

The Aussie has experienced downside against the majority of the majors on the day as indecision continues to reign in global commodities and equities markets. Disappointing Australian Home Loans numbers for March, released overnight added to the gloom for investors holding Aussie-denominated assets. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0703

The New Zealand Dollar has lost significant ground on the day as analysts continue to speculate that commodities may have topped. With no data of note due for release until tomorrow night’s NZ Producer Price figure, the Kiwi remains susceptible to moves in global equities and commodities markets. NEAR-TERM OUTLOOK – NEAGTIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP/CHF) is 1.4317

This week sees virtually no Swiss data releases of interest, so levels on the Swissie will be determined by its safe-haven status. If the market is spooked by moves by EU policy-makers to re-finance Greeces’ huge national debt, then the CHF may be the beneficiary. NEAR-TERM OUTLOOK – NEUTRAL.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts