Daily Exchange Rate Predictions For The Pound Sterling, Arab Emirates Dirham, US Dollar And Euro

March 12, 2012 - Written by Minesh Chaudhari

STORY LINK Daily Exchange Rate Predictions For The Pound Sterling, Arab Emirates Dirham, US Dollar And Euro

In the absence of any significant UK data releases, the POUND STERLING has experienced a straight down the middle trading day today. Tomorrow’s UK Trade Balance data has the potential to change things, but Sterling may trade to a NEUTRAL bias until Thursday’s British employment market data before, it re-establishes any clear direction.

The EURO has been well supported in the currency market this afternoon, as market whispers suggest that eurozone Finance Ministers are close to giving their assent to the second bail-out for Greece, which is the main topic of discussion at the eurogroup meeting in Brussels this afternoon. However, the eurogroup were also discussing the worrying state of Spain’s public finances, so positive sentiment towards the single currency may not hold, meaning that the euro is trading on a NEUTRAL footing. The current GBP EUR exchange rate is 1.1885.

The US Dollar has been supported on the day, seeing the GBP USD exchange rate drop to 1.5602, its lowest level since the last week of January. Dollar strength was driven by the return of a ‘risk-off’ trading environment, which in turn was caused by weak Chinese trade figures, released over the weekend, which showed that Asia’s giant economy ran its largest deficit in over 10 years last month. This means that the Greenback trades with a NEUTRAL TO POSITIVE bias in the near-term.

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 performed creditably in the currency markets today, taking the GBP AED exchange rate down to 5.7337, its lowest level since January. With worrying signals that the Western slowdown is starting to affect Asian industries and Europe’s debt crisis a long way from resolution, the Dirham is likely to trade with a NEUTRAL TO POSITIVE footing moving forward.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts