Forecasts: Pound to Dollar Exchange Rate (GBP/USD) & Pound to New Zealand Dollar (GBP/NZD) Predicted to Gain

Modified: Tuesday, 26 November 2013 09:58 BST - Written by Ben Hughes

STORY LINK Forecasts: Pound to Dollar Exchange Rate (GBP/USD) & Pound to New Zealand Dollar (GBP/NZD) Predicted to Gain

With eurozone and UK data releases virtually non-existent during today’s session, the gaze of currency market participants is likely to fall on events in the US later today.

Pound to Dollar Exchange Rate Could Sharply Increase This Afternoon

This afternoon’s centerpiece data release comes at 1500hrs GMT in the form of the latest Consumer Confidence survey in the States. With yesterday afternoon’s US Pending Home Sales figures having come as a major disappointment and the Federal Reserve having only one more chance to announce that it is beginning to turn the Quantitative Easing tap off before the end of the year, the set up would appear to suggest that the Pound US Dollar exchange rate could head sharply higher this afternoon.

Analysts are anticipating a showing of 72.4 from this afternoon’s gauge of the levels of optimism amongst American economic participants, up from last month’s print of 71.2, which was in itself better than had been anticipated. However, there would seem to be a distinct possibility that this afternoon’s figure will show a delayed reaction to the partial US government shutdown during the first half of last month which analysts estimate will knock up to 0.75% off America’s Q4 GDP number. If such a delayed reaction does come to pass, then expect the Buck to leak support during the second half of today’s North American equities session.

New Zealand Dollar Exchange Rate May Lose Ground, Resulting in a Boost for GBP/NZD

The next data set of note comes later tonight when October’s New Zealand Trade Balance figures are published at 2145 GMT. A relatively downbeat outcome is anticipated by most, with the consensus amongst economists being that the result will point to a trade deficit of some NZ$350m last month. Anything worse than this and the Kiwi Dollar is likely to lose ground, with the next target heading northwards for GBP NZD coming at the band of technical resistance which lies just above the two to one threshold.

Relevant Pound Sterling, US Dollar & New Zealand Dollar Exchange Rates (26/11/13 10:00 GMT)

The British Pound to US Dollar exchange rate is trading up +0.08% at 1.61843 GBP/USD.
The British Pound to New Zealand Dollar exchange rate is trading up +0.48% at 1.97222 GBP/NZD.
The Euro to US Dollar exchange rate is trading up +0.11% at 1.35491 EUR/USD.

The Euro to New Zealand Dollar exchange rate is trading up +0.51% at 1.65110 EUR/NZD.
The US Dollar to British Pound exchange rate is trading down -0.08% at 0.61788 USD/GBP.
The US Dollar to New Zealand Dollar exchange rate is trading up +0.4% at 1.21861 USD/NZD.
The New Zealand Dollar to US Dollar exchange rate is trading down -0.4% at 0.82061 NZD/USD.
The New Zealand Dollar to British Pound exchange rate is trading down -0.48% at 0.50704 NZD/GBP.

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