Euro, Pound, US Dollar & New Zealand Dollar Currency Exchange Rate Forecasts & Predictions

Modified: Thursday, 13 February 2014 10:25 BST - Written by Tim Boyer

STORY LINK Euro, Pound, US Dollar & New Zealand Dollar Currency Exchange Rate Forecasts & Predictions

The EURO (currency:EUR) endured a relatively poor session in the currency market yesterday, losing around 0.5% against the US Dollar (EUR/USD) and giving up over 1.0% against Pound Sterling (EUR/GBP). Poor whole of eurozone Industrial Production figures, published mid-morning UK-time ensured that the single currency started the day on the back foot. Matters got worse as the day progressed following comments from ECB policymember Benoit Coeure suggesting that the ECB may be preparing to instigate a negative deposit rate for institutional investors parking funds with them overnight. The single currency is forecast to trade with a NEUTRAL TO NEGATIVE bias moving forward and the current Pound Euro exchange rate stands at 1.2203 GBP/EUR.

The POUND STERLING (currency:GBP) posted good gains against the other sixteen most actively traded major global currencies yesterday following the Bank of England’s announcement that it was upping its 2014 GDP growth forecast for the UK economy to a respectable annualised 3.4%. However, comments from BoE Governor Mark Carney were not universally supportive of the Pound – he observed that the UK economy still faces strong headwinds and confirmed that Britain’s base rate would only gradually rise to a maximum of 2.00% over the next three years. Given this, the near-term exchange rate forecast for Pound Sterling is NEUTRAL.

The NEW ZEALAND DOLLAR (currency:NZD) slumped against the Pound Sterling (NZD/GBP) yesterday, but these losses may prove to be short-lived. Strong Chinese import figures, published during the early hours of yesterday morning, weren’t enough to push the Kiwi higher against the Pound, but today’s session may see a delayed response to this encouraging data set from New Zealand’s number one export market. The suggestion earlier in the week from new Federal Reserve chairperson Janet Yellen that the US bond-buying scheme may be here to stay for longer than anticipated may trigger further support for the New Zealand tender. The outlook for the Kiwi is now NEUTRAL TO POSITIVE and the Pound NZ Dollar exchange rate currently stands at 1.9938 GBP NZD.

The US DOLLAR (currency:USD) slumped by almost 1.0% against Sterling (USD/GBP) yesterday, meaning that Pound Dollar exchange rate was trading at close to the 1.6600 GBP/USD threshold by close of business UK time. New Fed Chairperson Janet Yellen muddied the waters for the Greenback on Tuesday by suggesting that the Fed is not on an automatic pathway to phasing out its Quantitative Easing programme. Her words were backed-up by Fed policymaker James Bullard yesterday, when he stated that any alteration in the pace of the taper would send out a powerful message to the markets. The Buck is now expected to trade on a NEUTRAL TO NEGATIVE footing in the near term.

For futher exchange rate forecasts, live currency converters or to compare exchange rates for an international currency transfer please refer to the main Currency News UK website.

Important Pound Sterling to Euro, New Zealand Dollar & US Dollar Exchange Rates (Updated: 10:25 GMT 13/02/2014)

The Pound Sterling to Euro exchange rate is trading down -0.36% at 1.21799 GBP/EUR.
The Pound Sterling to New Zealand Dollar exchange rate is trading up +0.07% at 1.99787 GBP/NZD.
The Pound Sterling to US Dollar exchange rate is trading up +0.27% at 1.66530 GBP/USD.
The Euro to Pound Sterling exchange rate is trading up +0.36% at 0.82103 EUR/GBP.

The Euro to New Zealand Dollar exchange rate is trading up +0.42% at 1.64030 EUR/NZD.
The Euro to US Dollar exchange rate is trading up +0.62% at 1.36725 EUR/USD.

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