Foreign Exchange Rates - Pound to Euro (EUR), Sterling to Dollar (USD) and New Zealand Dollar Rates

June 18, 2014 - Written by John Cameron

STORY LINK Foreign Exchange Rates - Pound to Euro (EUR), Sterling to Dollar (USD) and New Zealand Dollar Rates

What's the Pound Sterling Forecast Today? The Bank of England minutes, published earlier today, could push the British Pound higher against the euro (currency:EUR) and US Dollar (currency:USD) exchange rates during the latter part of this week’s trading session.

The memos of the UK central bank’s most recent get-together noted that the collected policymakers were ‘surprised’ that futures markets were not pricing-in a British interest rate hike until next year. The inference from this is that Base Rate may be heading Northwards this side of Christmas.

GBP to Euro exchange rate could see 1.2354

The Pound is likely to threaten new highs against several of the other sixteen most-actively traded global currencies as a result of the development, with the 1.2564 which the Sterling euro exchange rate (GBP/EUR) struck earlier in the week appearing to be particularly attainable.

A move through the next significant level of 1.7040 for the Pound Dollar exchange rate (GBP/USD) would also appear highly possible.

This evening’s US Federal Reserve policy announcement is also likely to have an effect on the GBP USD rate. Analysts are anticipating another Quantitative Easing taper from the US central bank, with a reduction to $35bn per month judged to be the most likely outcome.

Perhaps the main event for this evening however comes in the form of Fed Chair Janet Yellen’s press conference which follows her Bank’s announcement. A suggestion that US interest rates will be on their way up sooner rather than later would see GBP USD rejects a possible new 5 ½ year high.

Markets await New Nealand Dollar movement

Looking ahead, this evening’s New Zealand Gross Domestic Product numbers have the potential to be market-moving. An annualised showing of an impressive 3.7% is the consensus expectation amongst analysts for the Q1 figure. The counterpart Q4 2013 number showed at 3.1%, so the potential remains that tonight’s data may prove a little disappointing.

If this proves to be the case, then look for the Pound New Zealand Dollar exchange rate (GBP/NZD) to climb back towards the two to one threshold sooner rather than later.

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TAGS: Currency Predictions Dollar Pound Forecasts Euro Forecasts Euro Pou Forecasts