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

May 18, 2011 - Written by John Cameron

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

POUND STERLING

An unexpected rise in the number of UK workers claiming Job Seekers’ Allowance and a disappointing set of Bank of England minutes have seen the Pound suffer significant downside on the day. With only three of the nine-man Bank of England MPC committee voting for an interest rate hike and one of those leaving the MPC before the next meeting, a UK rate hike looks a long way off. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6154

The Dollar continues to make gains on renewed global risk aversion. As previously, negative data releases in the US tend to accentuate Dollar-weakness, so this afternoon’s relatively weak US Mortgage Approval data is unlikely to halt the Greenback’s progress. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1342

Eurozone policy-makers’ attempts to calm market jitters regarding Greece’s bail-out appear to be having the desired effect as the Euro held steady throughout the early part of today’s session. Yesterday’s comment form Euro Group Leader, Jean-Claude Juncker, that Greece’s debt may require a ‘soft re-structuring’ have gone down well. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5227

The Australian Dollar has made moderate gains on the day in spite of negative domestic data released overnight; the domestic Wage Cost Index for Q1 came in below expectations, cooling expectations of an imminent RBA interest rate hike. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 2.0475

Rising stock markets, indicating buoyant global risk sentiment have sent the NZD higher today. Indeed, the Kiwi has been the best-performing of the sixteen most-actively traded currencies on the session, gaining over 1.1% on the day against Sterling. This makes it a perfect time for people moving back to the UK from New Zealand to be sending money home. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP/CHF) is 1.4229

With no data out today in Switzerland, price action has been limited on Swiss Franc pairs and the Swissie remains close to near-term highs against most of the majors. However, there is a real danger of a technical retracement for the Franc, with global stock markets re-establishing their upward trajectory on the day. NEAR-TERM OUTLOOK – NEGATIVE.

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