Pound, Euro, Dollar & NZ Dollar Foreign Currency Exchange Rate Forecasts 2014 / 2015

Modified: Tuesday, 5 August 2014 09:54 BST - Written by John Cameron

STORY LINK Pound, Euro, Dollar & NZ Dollar Foreign Currency Exchange Rate Forecasts 2014 / 2015

Currency NEws UK presents our latest Pound, Euro, Dollar & New Zealand Dollar Foreign Currency Exchange Rate Forecasts 2014 / 2015 - The EURO (currency:EUR) was dealt a double blow yesterday. The morning news that Portugal’s number one retail bank Banco Espirito Santo was set to receive a €5bn bailout from the Iberian nation’s government hit the single currency, while the revelation that leading credit ratings agency Moodys had cut its growth forecast for France’s economy from 1.6% to 1.0% twisted the knife in. Investors remain nervous about what European Central Bank Chief Mario Draghi might have up his sleeve for Thursday’s post decision press conference.

The euro forecast to trade with a NEGATIVE bias moving forward and the Pound to Euro exchange rate stands at 1.2560 GBP/EUR.

The POUND STERLING (currency:GBP) has endured a week of drift during the past seven days. The assertion from the International Monetary Fund that the British tender might be overvalued by up to 10% added to the impression that after its strong market outperformance of the past 12 months, Sterling is now overbought. After yesterday morning’s better than anticipated PMI survey of the British construction sector, hopes are high for this morning’s services sector version of the closely-watched activity gauge.

Analysts predict that the Pound Sterling forecast will perform on a NEUTRAL footing moving forward.

The US DOLLAR (currency:USD) leaked support during yesterday’s session as market participants continued to price-in Friday’s weaker than anticipated American labour market numbers. This afternoon’s US ISM Non-manufacturing survey will be important in shaping the near-term future for the Buck, with Thursday’s weekly jobs figures also likely to affect its relative value. The impression amongst analysts is growing that last week’s soft domestic labour market data has given Fed Chair Janet Yellen a ready-made excuse to persevere with its ultra-lose monetary policy into the near-term.

For this reason the US Dollar forecast is predicted to trade on a NEUTRAL footing moving forward. The Pound to Dollar exchange rate stands at 1.6854 GBP/USD.

The NEW ZEALAND DOLLAR (currency:NZD) has recovered from the near-term lows against the Pound which it plumbed during last week’s session. The Kiwi is likely to remain anchored against the other major global tenders for some time following last month’s assertion from the Reserve Bank of New Zealand (RBNZ) that it would be pushing the pause button on the rate-hiking cycle which it set out on earlier in the year. However, if tonight’s New Zealand jobs numbers reveal that the overall level of domestic unemployment dropped from 6.0% to 5.8% during the second quarter of the year, then the clamour may increase for the RBNZ to reconsider its policy.

The outlook for the Kiwi is NEUTRAL TO POSITIVE and Pound to NZ Dollar exchange rate stands at 1.9775 GBP/NZD.

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