Pound Euro Exchange Rate: GBP EUR Forecast To Test Higher

Modified: Tuesday, 30 July 2013 09:06 BST - Written by John Cameron

STORY LINK Pound Euro Exchange Rate: GBP EUR Forecast To Test Higher

Pound Euro Exchange Rate: GBP EUR Forecast To Test Higher

Last Friday’s big winner was yesterday’s big loser in the global currency markets as the New Zealand Dollar endured a pronounced bout of selling pressure. The Kiwi had been well bid as last week’s session drew to a close thanks to the merest suggestion from the Reserve Bank of New Zealand that it may have to consider raising interest rates at some stage in the medium term.

Support for the Kiwi sent the Pound to New Zealand Dollar exchange rate plunging back down through the 1.9000 level before Friday’s market shutdown, but the pair bounded back into the 1.9000s once again during yesterday’s session thanks to comments from New Zealand Prime Minister John Key. The Antipodean nation’s premier described his country’s unit as being ‘overvalued’ and currency market participants took fright as a result, shifting their holdings out of Kiwi-denominated assets. The fallout saw the Pound to New Zealand Dollar exchange rate (currency : GBP NZD) spiral to as high as 1.9148 during Europe’s equities session.

Looking ahead to today’s session, a slew of eurozone data is likely to afford the Pound to euro exchange rate (currency : GBP EUR) renewed direction during early trading today. This afternoon’s German Consumer Price Index inflation figure takes pride of place in Europe’s data schedule and investors are expecting the Teutonic data to point to a cooling in the rate of price rises in the euroland’s leading economy. Such an outcome would be likely to cause investors to price-in a higher percentage chance that the European Central Bank will follow through on its recent threats and further loosen its already loose monetary policy. This, in turn, would cause GBP EUR to test higher with the proven band of resistance at just above the 1.1900 level providing a short-to-medium term target.

Elsewhere, this afternoon’s US Consumer Confidence Survey will be even more closely-watched than normal for clues regarding the health of the world’s leading economy. A strong showing from the print will lead analysts to surmise that a tapering of the US Federal Reserve’s QE programme is close at hand and the Greenback will gain ground as a consequence.

Looking for more Pound Euro exchange rate articles or to compare best euro exchange rate for an international money transfer, please refer to the main Currency News UK website.

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