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

January 3, 2012 - Written by John Cameron

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

POUND STERLING

This morning’s UK PMI Manufacturing survey provided some much-needed good news for Britain’s economy, showing that activity in the UK’s beleaguered manufacturing sector picked up last month. However, this key sector remains in contraction. Investors holding Sterling will be hoping for better news from Thursday’s PMI Services data. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5651

The Greenback has come under significant selling pressure since today’s New York open, following a better-than-expected US ISM manufacturing survey for December. With global stock markets powering forward over the last 24 hours, the downward move for the US Dollar could have legs. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1983

The Euro has tested higher against the other majors on the day, following the release of German data which showed that unemployment in the Eurozone’s major economy has fallen to its lowest level since 1991. If Germany’s ‘Teflon’ economy continues to resist the effects of the Eurozone debt crisis, then there is potential for the Euro to claw back some of the ground it lost in the lead-up to Christmas. NEAR-TERM OUTLOOK – NEUTRAL.


SOUTH AFRICAN RAND – The Pound South African Rand exchange rate (GBP ZAR) is 12.5559

The Rand has lost a limited amount of ground against the Pound during today’s session, in spite of a strong performance for global equities markets. South Africa’s currency failed to benefit from a return of the ‘risk-on’ trading environment as investors fretted about further intervention from SA’s policy-makers designed to weaken the Rand. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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TAGS: American Dollar Forecasts Currency Predictions Euro Forecasts Pound Forecasts