Today?s Currency Predictions For The Pound Sterling, Indian Rupee, US Dollar and Euro

March 8, 2012 - Written by Ben Hughes

STORY LINK Today?s Currency Predictions For The Pound Sterling, Indian Rupee, US Dollar and Euro

The Bank of England MPC left UK interest rates on hold and chose not to extend the bank’s QE scheme earlier today. Sterling has traded on a NEUTRAL footing since the announcement, a situation which is likely to continue until the weekend close, as long as tomorrow morning’s UK Industrial and Manufacturing Production numbers do not weigh down the Pound.

The EURO has enjoyed a POSITIVE session today, as market participants factored-in a very high percentage chance that Greece will meet tonight’s debt-swap deadline. Go-ahead comments from ECB President Mario Draghi at this afternoon’s monthly press conference, have further assisted the single currency. Draghi stated that his Bank’s credit-easing scheme has been an ‘unquestioned success’, taking the GBP EUR exchange rate all the way down to 1.1909 on the day.

The US DOLLAR has shown signs of easing in the markets today, as appetite for risk improved in anticipation of a positive outcome for Greece’s debt deadline tonight. Institutional investors will be trimming their positions and sitting tight ahead of tomorrow afternoon’s Non-Farm Payrollsdata. Recent US economic figures have been encouraging, so it appears possible that the NFP number will beat expectation – it is anticipated that the Greenback will trade with a NEUTRAL TO NEAGTIVE bias in the lead-up to this key risk event. The GBP USD exchange rate is currently 1.5819.

The INDIAN RUPEE has come under pronounced selling pressure against the pound over the past three weeks, taking the GBP INR exchange rate to its current level of 79.40. The move has been partly technical in nature, (i.e. caused by profit-taking from speculators following the strong move forward for the INR at the turn of the year). However, fundamentals have also driven the shift, with a wobble in Indian share indices and increased demand for US Dollars from Indian importers. The Rupee is predicted to trade with a NEUTRAL TO NEGATIVE bias in the near-term.

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