Currency Exchange Rate Forecasts For Pound Sterling, Euro, US Dollar & New Zealand Dollar

Modified: Monday, 29 July 2013 09:00 BST - Written by Frank Davies

STORY LINK Currency Exchange Rate Forecasts For Pound Sterling, Euro, US Dollar & New Zealand Dollar

The POUND STERLING has struggled to assert itself against the other major global currencies during recent weeks in spite of encouraging UK Q2 GDP figures and better than anticipated advance indicators. Now that more QE appears off the menu for Britain’s economy, a slightly more positive ‘forward guidance’ statement from the Bank of England’s monetary policy committee on Thursday could see Sterling moving forward once more. The outlook for the Pound is NEUTRAL TO POSITIVE.

The EURO has held up well against Sterling in recent sessions in spite of continuing rumours regarding the potential that the European Central Bank could cut interest rates. We will learn more about the ECB’s intentions on Thursday afternoon when Mario Draghi gives his latest press conference. Because of the potential that Draghi will hint at a loosening of the eurozone’s monetary policy, the single currency is expected to trade with a NEUTRAL TO NEGATIVE bias in the near term.

The US DOLLAR has given up ground against Sterling over the past seven days, sending Cable back above the 1.5400 threshold just before Friday’s market close. However, the Buck could be poised for a comeback sooner rather than later if this week’s heavy US data schedule suggests that a tapering of the Fed’s QE programme is likely next month. The Greenback is expected to trade on a NEUTRAL TO POSITIVE footing moving forward.

The NEW ZEALAND DOLLAR outperformed all of the other sixteen most-actively traded currencies during last week’s session. The Kiwi trumped the other majors thanks to comments from the Reserve Bank of New Zealand’s Governor Graeme Wheeler which hinted at a tightening of domestic monetary policy during the early part of 2014. However, the New Zealand tender’s gains could be reversed if US policymakers suggest that a tapering of the Fed’s QE programme is close at hand. The Kiwi is expected to trade on a NEUTRAL footing in the near-term and the GBP NZD exchange rate stands at 1.9040.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts