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Today?s Foreign Currency Rate Predictions For The Pound Sterling, US Dollar, Euro and Arab Emirates Dirham

March 30, 2012 - Written by John Cameron

The EURO dominated the headlines again today, as Spain revealed €27bn of new cuts from its budget, in an attempt to rein in levels of spending in its debt-hungry economy. The eurozone’s Finance Ministers bolstered the region’s firewall to €1bn at today’s meeting in Copenhagen, but there was bad news for the single currency when data released earlier showed that German Retail Sales had fallen. The GBP EUR exchange rate is 1.1990 and the euro heads towards this evening’s market close on a NEUTRAL TO NEGATIVE footing.

The POUND STERLING has performed creditably on the day, testing higher against both the Dollar and the euro. The absence of UK data releases appears to have helped the British currency, as other majors continued to flounder throughout the today. UK Manufacturing and Industrial Production figures due for release next week could change all of this, in the meantime Sterling is expected to trade with a NEUTRAL bias.

The US DOLLAR has showed signs of weakness in the currency markets during today’s session. This afternoon’s US Personal Consumption data came in as per expectations, however the closely-watched Michigan Confidence survey, released later on this afternoon, showed at a higher level than had been anticipated. This could trigger the return of a ‘risk-on’ trading environment, meaning that the Dollar heads into next week on a NEUTRAL TO NEGATIVE footing. The current GBP USD exchange rate is 1.5986.

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. This has caused the AED to come under sustained selling pressure in recent sessions, thanks to fears over the relative strength of the US economy. However, a stronger than expected US Michigan sentiment survey this afternoon, may only serve to weaken the Durham further. This means that the Emirates’ currency is expected to trade with a NEUTRAL bias in the near-term. The current GBP AED exchange rate is 5.8721.
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