Foreign Currency Exchange Rate Predictions For GBP EUR USD NZD

Modified: Wednesday, 23 October 2013 17:52 BST - Written by John Cameron

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

This morning’s Bank of England minutes revealed that British policymakers are turning more bullish about the future prospects of the UK economy. An improvement in the British housing and employment sectors was noted by committee members who once again registered a 9-0 vote against more Quantitative Easing. However in a clear case of putting the cart before the horse, the POUND STERLING has failed to record significant gains against any other major currency on the day. The outlook for the Pound is NEUTRAL TO POSITIVE.

The EURO has continued to push ahead against Sterling so far today, sending the GBP EUR exchange rate down to 1.1721 earlier. Fears of an interest rate cut from the European Central Bank following comments in recent months from Mario Draghi now appear to be fading from investors’ minds, allowing the single currency to recover its poise. Tomorrow morning’s German manufacturing and services sector data could prove market moving; in the meantime the euro is expected to trade with a NEUTRAL TO POSITIVE bias.

The US DOLLAR has clawed back a little ground against Sterling and the euro so far today. The move may prove to be nothing more than a minor correction following a poor run for the Greenback. However, there could potentially be more to it than this following yesterday’s US jobs data which showed an unexpected drop in the overall level of domestic unemployment last month. With the set-up for the Buck as it is, if the US Federal Reserve trims Quantitative Easing this side of Christmas the Dollar will register strong gains once more. The Buck is forecast to trade on a NEUTRAL TO NEGATIVE footing in the meantime. The GBP USD exchange rate stands at 1.6151.

The NEW ZEALAND DOLLAR has slumped on the day, sending the GBP NZD exchange rate up to 1.9285. The Kiwi remains tethered to risk sentiment, meaning that this morning’s downward move in global stocks has hit the New Zealand tender hard. The overnight news that Australian policymakers have announced that they are set to raise their nation’s debt ceiling, averting a fiscal crisis across the Tasman, has further drained support from the New Zealand unit. The Kiwi is predicted to trade in a NEUTRAL fashion ahead of tonight’s Kiwi trade numbers.

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