Exchange Rate Predictions For Today For the Euro, US Dollar, Pound Sterling and Arab Emirates Dirham

February 20, 2012 - Written by John Cameron

STORY LINK Exchange Rate Predictions For Today For the Euro, US Dollar, Pound Sterling and Arab Emirates Dirham

Today saw a very light schedule of UK data releases, with the latest Rightmove House Price Survey, released in the early hours of this morning, providing a highlight, showing a month-on-month increase of 4.1%. The POUND STERLING has spent the majority of today’s session trading with a NEUTRAL bias and this outlook is likely to continue unless tomorrow’s Public Sector Borrowing figures come in way outside expectations.

The EURO has traded with a NEUTRAL/POSITIVE accent during today’s session, as market participants factored-in the likelihood that the eurogroup will acquiesce to the next €130bn tranche of bail-out funding for Greece. This saw the GBP EUR exchange rate trade as low as 1.1954 on the day. Tomorrow afternoon’s whole of eurozone Consumer Confidence survey has the potential to be market-moving.

The US DOLLAR has been outperformed by all of the other sixteen most-actively traded currencies during today’s session, sending the GBP USD exchange rate all the way up to 1.5878. The Greenback’s NEGATIVE performance has been triggered by an uptick in global appetite for risk, which has sent share markets higher and caused institutional investors to shift out of their Dollar-denominated safety plays.

The ARAB EMIRATES DIRHAM remains directly pegged to the US Dollar, so any relative strength, or weakness, in the USD is directly mirrored in Dirham movements. The Dirham has suffered in the markets today, due to the return of ‘risk-on’ trading which took the GBP AED exchange rate up to 5.8328. Positive sentiment from institutional investors may well continue throughout this week’s session, especially if/when Greece’s next tranche of EU/IMF/ECB bail-out funding comes on tap. Given the likelihood of this happening, the outlook for the AED is NEGATIVE.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts