Exchange Rate Forecasts / Predictions: Pound Sterling,Euro, Dollar & New Zealand Dollar (GBP EUR USD NZD)

Modified: Tuesday, 18 March 2014 09:40 BST - Written by Ben Hughes

STORY LINK Exchange Rate Forecasts / Predictions: Pound Sterling,Euro, Dollar & New Zealand Dollar (GBP EUR USD NZD)

The POUND STERLING (currency:GBP) has put in an anaemic showing against the other sixteen most actively traded global currencies during the past two weeks. The view amongst investors is that the UK tender was broadly over-promoted in during the twelve months leading up to this period of downward drift, making such a technical move inevitable. Tomorrow afternoon’s Budget Statement from British Chancellor of the Exchequer George Osborne is unlikely to prove market moving, but the latest UK unemployment figures which precede it are. Analysts predict that the Pound will trade on a NEUTRAL TO NEGATIVE footing moving forward.

The near-term prospects of the EURO (currency:EUR) hinge on this morning’s German and whole of eurozone ZEW index data. Above expectations prints for either or both of these releases will be likely to see the single currency well supported during the middle part of this week’s session. However, yesterday’s higher than anticipated regional CPI inflation numbers mean that the euro is now forecast to trade on a NEUTRAL bearing in the short term. The Pound Sterling to Euro exchange rate is trading down -0.06% at 1.19402 GBP/EUR.

Good US Industrial and Manufacturing Production figures for February, published yesterday afternoon, ensured that the US DOLLAR (currency:USD) edged higher against Sterling during yesterday’s session. The economic statistics suggested that the vast American economy is beginning to put a long and treacherous winter behind it and is now moving forward one more. Expectations are low for this afternoon’s domestic inflation numbers in the States – a print of above the anticipated annualised CPI showing of 1.2% and the Buck is likely to trade with a NEUTRAL TO NEGATIVE bias moving forward. The Pound Sterling to US Dollar exchange rate is trading down -0.21% at 1.66018 GBP/USD.

The NEW ZEALAND DOLLAR (currency:NZD) struck a fresh 4-month high against Pound Sterling during yesterday’s session, touching 1.9351 GBP/NZD in early trading. The Kiwi was well-supported early on thanks to the weekend announcement that China will be easing its exchange rate controls – good news for Kiwi exporters. However, the New Zealand unit drifted a little in late trading as investors fretted over a possible escalation of tensions in Crimea. The NZD is now forecast to trade in a NEUTRAL TOPOSITIVE fashion moving forward. The Pound Sterling to New Zealand Dollar exchange rate is trading down -0.26% at 1.93833 GBP/NZD.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts