Exchange Rates Forecast: Pound Sterling to Euro (EUR), US Dollar (USD) & New Zealand Dollar (NZD)

May 22, 2014 - Written by Frank Davies

STORY LINK Exchange Rates Forecast: Pound Sterling to Euro (EUR), US Dollar (USD) & New Zealand Dollar (NZD)

Exchange Rates Forecast: Pound Sterling to Euro (EUR), US Dollar (USD) & New Zealand Dollar (NZD) - The POUND STERLING (currency:GBP) has failed to consolidate on the gains against the other major global currencies which it registered yesterday so far during today’s session. This morning’s UK GDP growth numbers printed exactly as per expectations, but the price action which followed for the Pound was generally to the downside, suggesting that investors had been hoping for a slight upward revision. Lower than anticipated Q1 UK import/export figures, also out this morning, added to the downside for the Pound Sterling forecast to trade on a NEUTRAL footing moving forward.

The EURO (currency:EUR) has improved slightly against the Pound during early trading today, sending the GBP EUR exchange rate down to as low as 1.2323. A survey showing that business confidence across the eurozone has continued to increase helped the single currency on the day, outweighing the negative sentiment caused by a potential loosening of ECB monetary policy which continues to hang over it. The euro exchange rate forecast is now NEUTRAL TO NEGATIVE.

The US DOLLAR (currency:USD) has improved against the Pound slightly so far today, sending the Pound Dollar exchange rate down to 1.6858 GBP/USD earlier. Part of this movement was driven by a shift out of Sterling-denominated assets, but partly it was triggered by a pronounced recovery for the Greenback following last night’s Federal Reserve minutes. The memos of the Fed’s most recent meeting revealed that policymakers held a broad-ranging discussion regarding the pace at which domestic interest rates should be increased. Analysts now predict that the Buck will trade with a NEUTRAL bias moving forward.

The NEW ZEALAND DOLLAR (currency:NZD) has clawed back some of its losses against the Pound Sterling today. Last night’s better than anticipated HSBC Manufacturing survey has helped the Kiwi, as has a generalised risk-on trading environment amongst global investors. Tonight’s ANZ Consumer Confidence survey of the nation’s economic participants is the next significant risk event of note for the Kiwi. In the meantime, the New Zealand tender is expected to trade on a NEUTRAL TO POSITIVE footing; the current Pound New Zealand Dollar exchange rate stands at 1.9698 GBP/NZD.

Revised Pound Sterling Exchange Rates (12:00 UK 23/05/2014)

The Pound Sterling to Australian Dollar exchange rate is trading down -0.11% at 1.82614 GBP/AUD.
The Pound Sterling to Canadian Dollar exchange rate is trading down -0.09% at 1.83583 GBP/CAD.
The Pound Sterling to Swiss Franc exchange rate is trading value +0% at 1.50881 GBP/CHF.
The Pound Sterling to Euro exchange rate is trading up +0.03% at 1.23565 GBP/EUR.
The Pound Sterling to Hong Kong Dollar exchange rate is trading down -0.14% at 13.05992 GBP/HKD.
The Pound Sterling to New Zealand Dollar exchange rate is trading up +0.12% at 1.97153 GBP/NZD.
The Pound Sterling to US Dollar exchange rate is trading down -0.14% at 1.68429 GBP/USD.
The Pound Sterling to South African Rand exchange rate is trading up +0.05% at 17.46398 GBP/ZAR.

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