Currency Rate Predictions For The Pound Sterling, US Dollar, Euro and New Zealand Dollar For Today

Published: Wednesday, 21 March 2012 18:00 BST - Written by James Fuller

STORY LINK Currency Rate Predictions For The Pound Sterling, US Dollar, Euro and New Zealand Dollar For Today

A busy day for the POUND STERLING began with the release of public sector borrowing figures, which showed that last month’s budget deficit was almost eight times larger than had been anticipated – bad news for Sterling on Budget day. Chancellor George Osborne’s Budget Statement raised a few eyebrows when he announced that he was cutting the 50% marginal rate of taxation, whilst reducing the earnings level at which lower earners would be paying a 40% rate of taxation. The Pound trades on a NEUTRAL footing going into tomorrow.

Another day of indecision for global share markets led to an uneven performance in the currency markets for the US DOLLAR. The Greenback has garnered some support during today’s session, clawing back some of the ground which it lost in the early part of the week, as institutional investors sought out a safe haven following fears regarding an apparent dip in Chinese growth rates. This saw the GBP USD exchange rate drop as low as 1.5817 on the day. The Dollar heads into tomorrow’s session trading with a NEUTRAL TO POSITIVE bias.

The EURO has lost ground against the US Dollar and the Pound on the day, in spite of a lack of tier one data releases in the eurozone. The GBP EUR exchange rate currently stands at 1.2014. Downside pressure for the single currency was sparked by ongoing concerns over the state of Italy and Spain’s finances, which in turn is causing Italian and Spanish bond yields to climb. The euro will enter tomorrow’s session on a NEUTRAL TO NEGATIVE footing.

Slightly better than anticipated NZ Current Account data, released last night, was not enough to stop the Kiwi haemorrhaging further support in the currency markets today. Appetite for assets with a higher risk-tariff, including the NZD, has dropped off dramatically since the start of the week, sending the GBP to NZD exchange rate all the way up to 1.9499 today. Tonight’s Q4 NZ GDP growth figure could reverse this, but in the lead-up to this key release, the New Zealand Dollar trades with a NEUTRAL TO NEGATIVE bias.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts