Foreign Exchange Rate Forecasts: Euro, Pound, US Dollar & New Zealand Dollar (EUR GBP USD NZD)

April 30, 2014 - Written by Tim Boyer

STORY LINK Foreign Exchange Rate Forecasts: Euro, Pound, US Dollar & New Zealand Dollar (EUR GBP USD NZD)

Here's our latest foreign exchange rate forecasts for the following exchange rates: Euro (EUR), Pound Sterling (GBP), US Dollar (USD) and the New Zealand Dollar (NZD):

Tougher stress test on the eurozone’s retail banks threatens to weigh down the EURO (currency:EUR) during coming sessions. EU regulators are introducing tough new laws which will force the region’s caisses to prove that their balance sheets can withstand a regional drop in GDP of 7%. The upshot is likely to see them hoard cash, dampening aggregate demand in mainland Europe. The current GBP EUR exchange rate stands at 1.2187 and the outlook for the single currency is NEUTRAL TO NEGATIVE.

The POUND STERLING (currency:GBP) enjoyed a strong finish to yesterday’s session following a blip during early trading which was provoked by mildly disappointing UK GDP figures. Tomorrow’s UK Mortgage Approvals data for last month provide the next risk event of note for Sterling – market participants will be looking for a strong figure to dispel concerns that the recent forward move in British property prices is stalling. The Pound is now forecast to trade on a NEUTRAL footing moving forward.

The US DOLLAR (currency:USD) once again struggled to assert itself against Sterling during yesterday’s session, sending the GBP USD exchange rate up to as high as 1.6847. Today’s session could be pivotal for the Greenback, with this afternoon bringing the publication of Q1 US Gross Domestic Product figures and this evening yielding the latest Federal Reserve policy announcement. If the Fed’s FOMC cuts its controversial Quantitative Easing programme by more than the expected $10bn, then expect the Buck to stage a comeback. In the near-term, the Dollar is forecast to trade on a NEUTRAL TO POSITIVE footing.

The NEW ZEALAND DOLLAR (currency:NZD) has endured a poor week on the market. An ebbing in the level of global appetite for risk due to heightened tensions in Ukraine has hit high-yielding currencies including the Kiwi. Meanwhile, fears persist amongst investors holding NZD-denominated assets that the Reserve Bank of New Zealand may not increase interest rates at as fast a pace as had been previously anticipated. The Kiwi is now expected to trade with a NEUTRAL bias moving forward and the current GBP NZD exchange rate stands at 1.9702.

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TAGS: American Dollar Forecasts Currency Predictions Dollar Poun Forecasts