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

Modified: Monday, 24 March 2014 15:55 BST - Written by David Woodsmith

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

The POUND STERLING (currency:GBP) has recorded small gains against the euro and the US Dollar during today’s session thanks to the publication of more evidence over the weekend that the British property sector is moving forward at pace. However, the Pound gave up ground against the high-yielders on the session, suggesting that a large number of Sterling-watchers are sitting on their hands and waiting for tomorrow’s UK CPI inflation numbers. The Pound is forecast to trade on a NEUTRAL footing in the meantime.

The EURO’s (currency:EUR) recent Bull Run against Sterling looks to have come to an end today, with the Pound euro exchange rate climbing to as high as 1.1980 earlier on. A PMI survey of France’s private sector companies, which showed its highest level of growth since 2011, was not enough to bolster support for the single currency which continues to be weighed down by the European Central Bank’s ultra low key lending rate of 0.25%. Meanwhile, the situation in Ukraine continues to play out in the background, meaning that the outlook for the euro is NEUTRAL TO NEGATIVE.

The US DOLLAR (currency:USD) has had an evens stevens sort of day so far. The Pound Dollar exchange rate traded up to 1.6511 earlier, but has subsequently dipped to 1.6461, as investors wait for the next market-shaping piece of news. Geo-political risk has the potential to spike at any given time, with the situation in Ukraine far from resolved. An escalation of tensions would be likely to trigger sustained support for the Greenback, which would appear ripe for a forward move thanks to the Federal Reserve’s suggestion during the middle part of last week that Quantitative Tightening might be relatively close at hand in the States. The Buck is forecast to trade with a NEUTRAL TO POSITIVE bias moving forward.

Weaker than anticipated Chinese manufacturing data, published during the early hours of last night, have halted the NEW ZEALAND DOLLAR’s (currency:NZD) strong move forward during recent weeks. It would now appear likely that the Kiwi Dollar has enjoyed the full benefit of the Reserve Bank of New Zealand’s recent interest rate hike. The apparent slowdown in China’s economy is seriously bad news for the commodity-driven New Zealand economy, meaning that the Kiwi is predicted to trade on a NEUTRAL bias moving forward. The next risk event of note comes in the form of Wednesday night’s domestic trade numbers; the current GBP NZD exchange rate stands at 1.9297.

Key Pound Sterling to Euro / Dollar & NZ Dollar Exchange Rates (Updated: 16:00 GMT 24/03/2014)

The Pound Sterling to Euro exchange rate is trading up +0.03% at 1.19577 GBP/EUR.
The Pound Sterling to New Zealand Dollar exchange rate is trading down -0.09% at 1.92957 GBP/NZD.
The Pound Sterling to US Dollar exchange rate is trading down -0.07% at 1.64823 GBP/USD.

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