Foreign Currency Exchange Rate Predictions For EUR GBP USD NZD

Modified: Monday, 16 September 2013 16:53 BST - Written by David Woodsmith

STORY LINK Foreign Currency Exchange Rate Predictions For EUR GBP USD NZD

The EURO has recovered some of the losses which it incurred at the end of last week as fears surrounding the Troika’s latest audit of Portugal’s finances abate. Representatives from the IMF/EU/ECB are deciding whether the debt-troubled Atlantic state will receive its latest tranche of bailout funding. Indications are that it will, meaning that the single currency is expected to trade on a NEUTRAL TO POSITIVE footing in the near term. The current GBP EUR exchange rate stands at 1.1929.

The POUND STERLING has struggled to make its mark against the other major currencies so far today. With pronounced shifts in the level of support for several other leading tenders, the Pound has suffered from a pronounced drift. All this could change tomorrow morning if the latest UK Consumer Price Index figures print at above or below the expected level. The outlook for Sterling ahead of tomorrow’s release is NEUTRAL TO POSITIVE.

The US DOLLAR has slumped in the markets over the past two sessions, sending the GBP USD exchange rate up to 1.5958 earlier. The move against the Buck has been largely fuelled by speculation regarding the identity of the next Chairman of the Federal Reserve – with former leading contender Larry Summers pulling out of the race; it now looks likely that pro- Quantitative Easing candidate Janet Yellen will win the day. The development is likely to weigh heavily on the Greenback, which is now forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The NEW ZEALAND DOLLAR has enjoyed strong support so far today, sending the GBP NZD exchange rate down to as low as 1.9376 earlier. The forward move of over 1% for the Kiwi against the Pound has been driven by a surge in appetite for risk from institutional investors who are pricing in an increased chance that the Federal Reserve’s Quantitative Easing programme will be continuing following the news that Larry Summers has pulled out of the race to become Fed Chairman. The Kiwi is expected to trade with a POSITIVE bias moving forward.

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