Today's Exchange Rate Forecast For Pound Sterling, Euro, Dollar & South African Rand

Modified: Monday, 28 October 2013 09:13 BST - Written by Ben Hughes

STORY LINK Today's Exchange Rate Forecast For Pound Sterling, Euro, Dollar & South African Rand

The key data release for the POUND STERLING this week comes tomorrow morning in the form of last month’s Mortgage Approvals data. The UK coalition government is banking on a continuing improvement in Britain’s housing sector to add momentum to the nation’s economic recovery, adding significance to the mortgage number. In the meantime, Sterling is expected to trade on a NEUTRAL TO NEGATIVE footing.

The EURO is likely to endure pronounced swings in its relative value during this week’s session thanks to a packed schedule of eurozone data releases. Wednesday’s trading day could prove key with the publication of two tier one data releases from Germany. A tame showing from the latest Teutonic unemployment data and/or a below par print for the October inflation number could heap the pressure on the single currency. The outlook for the EURO is NEUTRAL TO NEGATIVE and the Pound euro exchange rate stands at 1.1708.

The US DOLLAR has struggled in the global currency market during recent weeks as American policymakers threatened to push the self destruct button by stalling on a debt deal. Now that an accord has been reached, the Greenback should make a comeback, right? Wrong, because investors holding Dollar-denominated assets now fear that the US Federal Reserve will maintain QE into next year. With this millstone hanging around the Buck’s neck, the outlook for the US tender is NEUTRAL TO NEGATIVE. The current GBP USD exchange rate is 1.6162.

The SOUTH AFRICAN RAND has firmed a little against the Pound during the past two months thanks to improved conditions in South Africa’s labour market. With domestic inflation on the rise again, it appears increasingly likely that the South African Reserve Bank will be forced to increase domestic interest rates. With this in mind, the South African tender is forecast to trade with a NEUTRAL TO POSTIVE bias moving forward. The GBP ZAR exchange rate stands at 15.8580.

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