Daily Exchange Rate Forecasts For The Pound Sterling, Euro, US Dollar and Singapore Dollar

May 10, 2012 - Written by David Woodsmith

STORY LINK Daily Exchange Rate Forecasts For The Pound Sterling, Euro, US Dollar and Singapore Dollar

The POUND STERLING has experienced a wave of support in the currency markets this afternoon following the Bank of England’s lunchtime announcement that it will be keeping British interest rates on hold and will not be extending the £325bn already allocated to it QE scheme. Better than anticipated UK Industrial Production and Manufacturing Production figures this morning also helped the Pound, meaning that the UK currency heads into tomorrow’s session on a POSITIVE footing.


The EURO performed steadily on the day, in spite of an announcement from the Bank of France that it expected to see a 0% national growth in the first half of 2012. If tomorrow’s German inflation data comes in below expectations, then there may be increased talk of an ECB rate cut. In the meantime, the single currency is expected to trade with a NEUTRAL TO NEGATIVE bias. The current GBP EUR exchange rate is 1.2468.


The US DOLLAR has lost a little ground against both the Pound and the Euro during today’s session. Investors have scaled back on their positions of safety during the day thanks to better-than-anticipated Australian unemployment data and a failure of Greece’s far-left Syriza bloc to form a new anti-bailout government in the troubled Hellenic state. The current GBP USD exchange rate stands at 1.6162 and the Greenback is expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term.


The risk-sensitive SINGAPORE DOLLAR has sunk to its lowest level this year against the Pound, taking the GBP SGD exchange rate all the way up to 2.0242 on the day. Political instability in the eurozone has caused investors to shy away from holding assets which are perceived to carry a higher risk tariff, taking the SGD lower. The losses would surely have been greater had it not been for a strong showing for last night’s Australian jobs numbers, so the Singie is expected to trade with a NEAUTRAL TO NEGATIVE bias moving forward.

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TAGS: Currency Predictions Dollar Pound Forecasts Euro Forecasts Euro Pou Forecasts