Foreign Currency Exchange Rate Predictions For Euro, Pound Sterling, Dollar & Rand

Modified: Thursday, 3 October 2013 16:17 BST - Written by Frank Davies

STORY LINK Foreign Currency Exchange Rate Predictions For Euro, Pound Sterling, Dollar & Rand

The EURO has performed with credit so far today, sending the GBP EUR exchange rate down to its current level of 1.1895. The single currency has firmed on the day largely thanks to yesterday afternoon’s news that Italy’s government had survived a vote of confidence. This morning’s better than expected August eurozone Retail Sales figures have added to the prevailing upside for the euro. The single currency is now forecast to trade on a NEUTRAL TO POSITIVE footing moving forward.

This morning’s UK services sector data showed the highest levels of quarterly growth in this area since the mid-1990s but the POUND STERLING has still struggled on the day. Although the quarterly gauge of activity in Britain’s tertiary sector was positive, September’s monthly reading was below expectations. The near-term forecast for Sterling is NEUTRAL TO NEGATIVE.

The US DOLLAR remains at a low ebb in the currency market as fears regarding a possible debt default continue to play on the minds of investors. Last night’s dire warning from US President Barack Obama that Republican hardliners are prepared to force a US debt default is likely to ensure that the Greenback remains under pressure. Tomorrow’s Non Farm Payrolls data will have to thrash expectations to turn around the Dollar’s fortunes. The GBP USD exchange rate currently sits at 1.6171 and the Buck is expected to trade with a NEUTRAL TO NEGATIVE bias in the short to medium term.

The SOUTH AFRICAN RAND has experienced a poor run this week thanks to the ‘risk off’ trading environment which America’s debt travails have engendered. With signs re-emerging within the past week that the bitter standoff between the nation’s workers and their employers is beginning to escalate once more, the danger signals are there for the Rand. A weak US jobs figure tomorrow could send the South African unit tumbling. The outlook for the Rand is NEUTRAL TO NEGATIVE and the GBP ZAR exchange rate stands at 16.2590.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts