Foreign Currency Exchange Rate Forecast For EUR GBP USD NZD

Modified: Monday, 4 November 2013 17:47 BST - Written by John Cameron

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

Solid economic news from the eurozone earlier, in the form of a better than expected October PMI survey of the region’s manufacturing sector, wasn’t enough to stop the EURO losing a small amount of ground against Sterling on the session. GBP EUR’s forward move to 1.1825 was the result. Wednesday’s retail sales numbers from mainland Europe are the next release of note for the euro but the big event of the week comes on Thursday afternoon when ECB President Mario Draghi’s words will be picked over by analysts. In the meantime, the single currency is forecast to trade on a NEUTRAL TO POSITIVE footing.

The POUND STERLING has clawed back ground against nearly all of the other sixteen most-actively traded global currencies so far today, following its period of drift at the end of last week. The UK tender has failed to push on against the Commodity Dollars but is trading into positive territory against the Dollar and the euro thanks in part to a report from a trade body representing Accountants in England and Wales which predicted that Britain’s economy is set to outperform the rest of Europe’s developed economies in the medium term. The Pound is expected to trade with a NEUTRAL TO POSITIVE bias in the near-term.

The US DOLLAR has leaked support so far today, sending the GBP USD exchange rate up to as high as 1.5978 earlier on. The Greenback has given up ground on the day following a positive session on Friday, making it a clear case of one step forward, two steps back. The Fed’s assertion of last week that the American economy continues to show signs of improvement appears to be flimsy evidence that the US central bank is about to cut QE. For this reason, the Buck is forecast to trade in a NEUTRAL TO NEGATIVE fashion footing moving forward.

Last night’s Chinese data, which revealed that activity levels in the combined Non-Manufacturing sectors of the world’s second largest economy grew at an accelerated rate last month, has served to trigger renewed support for the NEW ZEALAND DOLLAR today. The GBP NZD exchange rate tumbled to as low as 1.9191 earlier thanks to strong support for the Kiwi following the numbers from China. With the Reserve Bank of New Zealand talking up the chances of an increase in interest rates early next year, the outlook for the Kiwi is now POSITIVE.

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