Exchange Rate Forecasts & Predictions - Pound Sterling to Euro (GBP EUR) & US Dollar New Zealand Dollar (USD NZD)

Modified: Friday, 13 June 2014 12:22 BST - Written by Minesh Chaudhari

STORY LINK Exchange Rate Forecasts & Predictions - Pound Sterling to Euro (GBP EUR) & US Dollar New Zealand Dollar (USD NZD)

The POUND STERLING (currency:GBP) hit new near-term highs against the euro during today’s session following the publication of official data revealing that the number of people out of work in the UK is at its lowest for over 5 years. There’s no further tier one British data of note for the remainder of the week, so the Pound Sterling forecast is to trade with a NEUTRAL TO POSITIVE bias in the short term.

The EURO (currency:EUR) has lost ground against the Pound but held steady against the Dollar so far today. European Central Bank Chief Mario Draghi would have been hoping that last week’s policy loosening measures would have had a more pronounced weakening effect on the single currency by now. However, tomorrow morning’s French GDP numbers have the potential to be market-moving. In the longer term, the single currency will need institutional investors to increase their uptake of euro-denominated loans for carry trades for Draghi to get his wish. The outlook for the euro is NEGATIVE and the current Pound Euro exchange rate stands at 1.2398 GBP/EUR.

The US DOLLAR (currency:USD) has put in a disappointing showing so far today. Hopes were high that the Buck might stage a concerted comeback this week following last Friday’s encouraging domestic job creation figures, but so far such a move has failed to materialise. Tomorrow afternoon’s US retail sales numbers for last month have the potential to be market-moving, but in the meantime the Greenback is forecast to trade on a NEUTRAL TO NEGATIVE footing. The current Pound Dollar exchange rate stands at 1.6790 GBP/USD.

Investors holding NEW ZEALAND DOLLAR (currency:NZD)-denominated assets will be closely-monitoring tonight’s Reserve Bank of New Zealand policy decision. An interest rate hike is anticipated, however this is by no means a done-deal. Greg Gibbs of Royal Bank of Scotland observed earlier that, “by not hiking and expressing some negativity around the currency, they might hope to get it down,” highlighting RBNZ Governor Graeme Wheeler’s oft-expressed wish to weaken the Kiwi. The New Zealand tender is expected to trade on a NEUTRAL footing in the lead-up to the announcement and Pound New Zealand Dollar exchnage rate stands at 1.9622 GBP/NZD.

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