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

June 21, 2011 - Written by John Cameron

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

POUND STERLING

The Pound has suffered limited losses against virtually all of the other majors during today’s session. With this morning’s Public Sector Borrowing figures for May providing few surprises, most investors are taking a ‘wait-and-see’ approach ahead of tomorrow’s release of June’s BoE Minutes. If more than two MPC members voted for a rate hike, Sterling could gain. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6221

The Dollar weakened off during this afternoon’s European session as investors’ jitters regarding Greece’s debt situation subsided. US Existing Home Sales data released at the start of the North American session showed that the US housing market suffered a smaller monthly contraction than had been anticipated in May, however the Greenback remains susceptible to an up-shift in global risk appetite. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1278

The Euro has made gains on the day as speculators factor in a positive outcome for the Greek government in this afternoon’s vote of confidence. This would re-establish Greek Premier George Papandreou’s mandate to force through the unpopular austerity measures that the EU-IMF are insisting on before they will release the fifth and final €12bn tranche of Greece’s first emergency bail-out. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5291

The Minutes of June’s Reserve Bank of Australia’s Monetary Policy meeting struck a down-beat tone when they were released last night, stating that recent Australian data releases have been of a soft nature and hinting that there was little scope for a rate rise over the next few months. This caused the market to move against the Aussie, but this situation has reversed as today’s session progressed, thanks to optimism that Greece’s debt situation will be expediently resolved. NEAR-TERM OUTLOOK – NEUTRAL.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5774

Today saw a mixed bag of Canadian data releases, with May’s Leading Indicators figure showing a better-than-expected monthly improvement. However, April’s Canadian Retail Sales figures slightly disappointed analysts, but this has not stopped the CAD out-performing almost all of the majors on the day. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


SOUTH AFRICAN RAND – The Pound South African Rand exchange rate (GBP/ZAR) is 10.9445

The Rand has enjoyed another day of gains, which has seen the GBP ZAR rate drop by over 0.5%, to hold below the 11.00 level. With GDP growing by a startling 4.8% in the first three months of 2011, South Africa’s real economy looks to have the dynamism to push the Rand further forward. NEAR-TERM OUTLOOK – POSITIVE.


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