Exchange Rate Forecast & Predictions for Pound Sterling (GBP), Euro (EUR), US Dollar (USD) & NZ Dollar (NZD)

May 11, 2014 - Written by Tim Boyer

STORY LINK Exchange Rate Forecast & Predictions for Pound Sterling (GBP), Euro (EUR), US Dollar (USD) & NZ Dollar (NZD)

Exchange Rate Forecasts & Predictions for Pound Sterling (GBP), Euro (EUR), US Dollar (USD) & NZ Dollar (NZD): The POUND STERLING (currency:GBP) traded on an even keel on Friday in spite of a disappointing PMI survey of the construction sector of the British economy. Sterling continues to fare well against the euro thanks to the general feeling amongst investors that the Bank of England is ahead of the curve compared to the ECB when it comes to its monetary policy. Wednesday’s UK unemployment numbers provide a standout in an otherwise nondescript session for British data releases – the Pound is forecast to trade with a NEUTRAL bias in the near-term.

Ongoing fears regarding an escalation of tensions in Ukraine into a full-blown civil war have weighed heavily on the EURO (currency:EUR) during recent sessions. Heavy hints from European Central Bank President Mario Draghi that Bank may be about to introduce its own version of Quantitative Easing as early as next month have added to the downside pressure on the single currency, sending the GBP EUR exchange rate to within two pips of a fresh 16-month high at 1.2256 on Friday. The outlook for the euro is now NEUTRAL TO NEGATIVE.

The US DOLLAR (currency:USD) pulled back from the edge against both the Pound and the euro during the final session of last week as investors took profit on earlier GBP USD and EUR USD trades following a move by both pairs to the top of their multi-year ranges. Tomorrow’s US Retail Sales data could shape the fortunes of the Greenback is the short term, however the Buck is likely to be held back in the medium term thanks to market participants’ fears that the next US interest rate hike may be a long way off yet. The outlook for the Dollar is NEUTRAL TO NEGATIVE and the GBP USD exchange rate stands at 1.6849.

The NEW ZEALAND DOLLAR (currency:NZD) improved against the Pound Sterling during Friday trading, sending GBP NZD down from the mid-1.9600s down into the lower part of the 1.9500s. Tomorrow night’s NZ Retail Sales numbers should be closely monitored, but while the Reserve Bank of New Zealand is talking up consecutive interest rate rises for the second half of 2014, the Kiwi is likely to be well-supported. The New Zealand tender is therefore forecast to trade on a NEUTRAL TO POSITIVE footing in the short to medium term and the current GBP NZD exchange rate stands at 1.9542.

Current Pound Sterling, Euro, Dollar & NZ Dollar Foreign Exchange Rates (12:05/2014)

The Pound Sterling to Euro exchange rate is trading up +0.04% at 1.22562 GBP/EUR.
The Pound Sterling to New Zealand Dollar exchange rate is trading up +0.02% at 1.95536 GBP/NZD.
The Pound Sterling to US Dollar exchange rate is trading up +0.09% at 1.68739 GBP/USD.
The Euro to Pound Sterling exchange rate is trading down -0.04% at 0.81592 EUR/GBP.
The Euro to New Zealand Dollar exchange rate is trading down -0.01% at 1.59541 EUR/NZD.
The Euro to US Dollar exchange rate is trading up +0.05% at 1.37677 EUR/USD.
The US Dollar to Euro exchange rate is trading down -0.05% at 0.72634 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading down -0.09% at 0.59263 USD/GBP.

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