Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, JPY

Published: Thursday, 17 November 2011 13:56 BST - Written by John Cameron

STORY LINK Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, JPY

POUND STERLING

The last UK data release of any significance for the week came this morning, with the publication of October’s Retail Sales numbers. The annualised shop sales figure bettered expectations, however the Pound failed to make any significant headway, as investors continued to fret about the possibility of an extension to the BoE’s £275bn asset purchase scheme, following yesterday’s weak employment figures. NEAR -TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5781

The Greenback has continued its slow march forward against the Pound and the Euro on the day. Global stocks leaked support once again over the past 24hrs as investors fear the worst for the Eurozone debt situation, providing support for the US Dollar. The GBP USD rate is showing all the signs of being in a classic downtrend. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1687

Today’s Spanish bond auction caused further reason for concern for investors holding Euro-denominated assets; the yield which the Spanish government is having to pay on 10-year bonds rose to 6.975%, the highest level for 14 years. These are dark days for Europe’s single currency. NEAR-TERM OUTLOOK – NEGATIVE.


JAPANESE YEN – The Pound Japanese Yen exchange rate (GBP/JPY) is 121.47


Japanese authorities appear determined to weaken the Yen in order to improve the terms of trade for domestic exporters. This caused a massive intervention at the end of last month, when the Bank of Japan sold a massive volume of Yen. Japan’s central bank has been steadily buying USD in the market in subsequent weeks. It appears highly likely that the BoJ will get its wish for a weaker Yen in the medium term. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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TAGS: American Dollar Forecasts Currency Predictions Euro Forecasts Japan Forecasts