British Pound (GBP) Exchange Rate Forecast : GBP/EUR, GBP/USD and GBP/NZD Outlook, News and Predictions

Modified: Friday, 13 March 2015 10:16 BST - Written by John Cameron

STORY LINK British Pound (GBP) Exchange Rate Forecast : GBP/EUR, GBP/USD and GBP/NZD Outlook, News and Predictions

The POUND STERLING (currency:GBP) put in a weak performance against the Euro, US Dollar and NZ Dollar during yesterday’s trading. The UK unit loss ground thanks to a pronounced bout of profit-taking from speculators on the day, but this morning’s British Construction Output numbers will give Sterling a chance of instant redemption.

The Pound has put in a strong performance during the past two years, but the Bank of England’s apparent reticence in hiking interest rates could anchor its fortunes moving forward.

Analysts forecast that the Pound will perform on a NEUTRAL TO NEGATIVE footing moving forward.

Here are the latest exchange rates today:

The Pound to Australian Dollar rate is +0.2 pct higher at 1.93601 GBP/AUD.
The Pound to Canadian Dollar rate is -0.13 pct lower at 1.88732 GBP/CAD.
The Pound to Swiss Franc exchange rate is -0.09 pct lower with a conversion rate of 1 GBP equals 1.49185 CHF.
The Pound to Euro exchange rate is -0.17 pct lower with a conversion rate of 1 GBP equals 1.39887 EUR.
The Pound to New Zealand Dollar exchange rate converts +0.56 per cent higher at 1 GBP is 2.02188 NZD.
The Pound to US Dollar exchange rate is -0.4 pct lower with a conversion rate of 1 GBP equals 1.48315 USD.
The Pound to South African Rand conversion rate is +0.64 pct higher at 18.38252 GBP/ZAR.

Euro Trades Sideways (For Once)

The EURO (currency:EUR) has enjoyed a brief period of respite over the past 24hrs, causing the GBP EUR exchange rate to edge lower towards the 1.4000 threshold.

However, the shared currency’s problems remain firmly in place – analysts continue to predict that a potent combination of Quantitative Easing and Greece will maintain pressure on the euro for months to come.

There’s little in the way of economic statistics from the euro area today to alter matters – the forecast for the single currency is therefore still NEGATIVE.

US Dollar Exchange Rate: USD Re-establishes Itself

The US DOLLAR (currency:USD) has re-established itself in the global currency markets during the past week thanks to another strong set of American jobs numbers a week ago.

The USD’s near-term progress will be tested by this afternoon’s Michigan Confidence survey, but in truth it will take something massively disappointing from the closely-monitored gauge of sentiment to cause investors to alter their expectations for a June interest rate hike from the Fed.

The outlook for the Greenback is NEUTRAL TO POSITIVE.

New Zealand Dollar (NZD) Exchange Rate Rallies on RBNZ Decision

The NEW ZEALAND DOLLAR (currency:NZD) stormed ahead against the other major global currencies during yesterday’s session.

The Reserve Bank of New Zealand’s decision to maintain its key interest rate at its current level of 3.5% on Wednesday night triggered a pronounced relief rally for the Kiwi, while the RBNZ’s assertion that, ‘future interest rate adjustments, either up or down, will depend on the emerging flow of economic data’, caught investors on the hop.

The fact that the RBNZ apparently considers an interest rate hike as likely as a cut will support the Kiwi for months to come.

The outlook for the New Zealand unit is NEUTRAL TO POSTIVE.

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