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

January 10, 2012 - Written by John Cameron

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

POUND STERLING

The Pound was buoyed by a report from the British Chambers of Commerce, released last night, which suggested that UK business leaders feel that the UK’s economy may avoid slipping into recession in 2012. This saw Sterling gain on the day against most of the majors, with the notable exception of the high-yielders. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5481

Support for the US Dollar has eased on the day, as stock markets recovered from their recent wobble to register significant gains. The release of the Federal Reserve’s Beige Book late on tomorrow provides the next risk event of note for the US Dollar. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.2119

The Euro has avoided losing any further ground against the Pound and the US Dollar on the day, in spite of an announcement by leading credit ratings agent Fitch that there is a ‘significant’ chance that they will downgrade Italy’s credit rating. There was better news for the French economy, with this morning’s data showing that the rise in the country’s industrial output was greater than anticipated in November. NEAR-TERM OUTLOOK – NEUTRAL.


ARAB EMIRATES DIRHAM – The Pound Dirham exchange rate (GBP AED) is 5.6899

The Dirham remains directly pegged to the US Dollar, so any relative strength, or weakness, in the USD is directly mirrored in Dirham movements. The GBP AED exchange rate has edged forward on the day, following a positive performance for global stock indices. The GBP AED rate has lost a significant amount of ground over the past 6 months, having last traded above 6.0000 as recently as the end of August. Further upside is likely for the pair, due to a weakening AED, if stock markets resume their march forward. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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TAGS: American Dollar Forecasts Currency Predictions Euro Forecasts Pound Forecasts