Foreign Currency Exchange Rate Predictions For GBP EUR USD NZD

Modified: Friday, 1 November 2013 13:45 BST - Written by Frank Davies

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

The following are the exchange rate forecasts/predictions for currencies:GBP EUR USD NZD:

The POUND STERLING (currency:GBP) firmed in the currency market yesterday thanks largely to the complete absence of tier one UK data releases which allowed it to regain its losses of the early part of the week. Investors holding Sterling-denominated assets will be looking to this morning’s Purchasing Managers Index survey of the British manufacturing sector to provide the Pound with renewed near-term impetus. In the meantime, the UK unit is forecast to trade on a NEUTRAL footing.

The EURO (currency:EUR) put in a poor performance in the global currency markets during yesterday’s trading session following the publication of September’s eurozone Consumer Price Index data which printed at well below the anticipated level. The onus will now be on the European Central Bank to re-inflate mainland Europe’s economy, making a further loosening of monetary policy likely in the region. For this reason, the outlook for the single currency is NEUTRAL TO NEGATIVE. The current Pound euro exchange rate stands at 1.1807 GBP/EUR.

The US DOLLAR (currency:USD) couldn’t make up its mind which way it wanted to head next during the 24hrs which followed Wednesday evening’s US Federal Reserve policy announcement. At first, the Buck picked up support thanks to the US central bank’s assertion that America’s economy had ‘generally improved’ since their last get-together in spite of October’s partial government shutdown. However, the Fred’s failure to announce a timescale for tapering its controversial Quantitative Easing programme may weigh heavily on the Greenback moving forward. Nevertheless, the Dollar is expected to trade on a NEUTRAL TO POSITIVE footing in the short term and the GBP USD exchange rate stands at 1.6038.

The NEW ZEALAND DOLLAR (currency:NZD) bullied the Pound Sterling during yesterday’s trading day, sending the Pound to NZ Dollar exchange rate down into the low 1.9300s GBP NZD. Support for the Kiwi was driven by comments from Reserve Bank of New Zealand Governor Graeme Wheeler during the early hours of Thursday morning confirming that his central bank will be hiking its official cash rate next year. The Kiwi Dollar is now expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

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