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

June 22, 2011 - Written by John Cameron

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

POUND STERLING

The Pound has come under severe selling pressure following the release of the minutes of June’s Bank of England Monetary Policy Committee meeting earlier today. The minutes showed that only two of the nine man committee had voted for an interest rate hike, following the departure of long-time hawk Andrew Sentance. The minutes went on to suggest that an increase to the Bank’s Quantitative Easing programme was more likely than a rate rise. NEAR-TERM OUTLOOK – NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6098

The Dollar has made gains against the Pound and the Euro during the European session, suggesting that investors remain unconvinced that Greece’s debt woes are at an end and are still looking to the Greenback as a safe haven. If Fed Chairman Ben Bernanke continues with his downbeat message regarding the US economy at his press conference tonight, then the Dollar could be set for considerable downside. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1193

Last night’s vote of confidence in the new Greek cabinet initially saw the Euro weaken, suggesting that investors do not believe that Greece’s debt crisis is at an end. Whole-of-Eurozone New Industrial Orders data severely disappointed on its release this morning, but market participants appear ready to put any negative European data to one side at the moment and instead concentrate on the Eurozone’s relative yield differential versus the Pound and the Dollar. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5212

Asian equities made gains overnight in response to news of the Greek parliament’s vote of confidence in Greece’s new cabinet allayed fears of an imminent Eurozone debt meltdown. The Australian Dollar remains susceptible to a downward move as it trades towards key technical levels against several other majors. Bad news from Greece would also hit the high-yielding Aussie hard. NEAR-TERM OUTLOOK – NEUTRAL.


NEW ZEALAND DOLLAR – The Pound New Zealand Dollar exchange rate (GBP/NZD) is 1.9735

The New Zealand Dollar has been the best-performing of the sixteen most-actively traded currencies on the day, with the GBP NZD dropping by over 1.2% by the start of the European afternoon session. This move has largely been due to figures released overnight which showed that New Zealand’s Current Account deficit is far smaller than had been anticipated. Increased global appetite for risk has also helped the Kiwi. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


NORWEGIAN KRONE – The Pound Norwegian Krone exchange rate (GBP/NOK) is 8.7965

Norway’s central bank announced that it is maintaining its key lending rate at 2.25% earlier today. The accompanying statement suggested that if economic growth, rising consumer prices or producers’ input costs are higher than projected, then monetary policy may have to be tightened sooner rather than later. These comments saw the Norwegian Krone garner significant support. NEAR-TERM OUTLOOK – POSITIVE.

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