British Pound Sterling FX Outlook vs NZD EUR USD

December 8, 2015 - Written by James Fuller

STORY LINK British Pound Sterling FX Outlook vs NZD EUR USD

Sterling to Trade on a Neutral to Negative Footing ahead of BoE Rate Decision

The POUND STERLING (currency : GBP) has put in a tame performance during today’s session.

The UK unit continues to be weighed down by Bank of England Governor Mark Carney’s recent assertion that British interest rates will remain low ‘for a long time to come’.

Thursday morning’s Bank of England monetary policy announcement could heap further pressure on the Pound – in the meantime, expect Sterling to trade on a NEUTRAL TO NEGATIVE footing.

Weak Chinese Imports Slowed New Zealand Dollar Gains Today

The NEW ZEALAND DOLLAR (currency : NZD) was held back on the day by another weak set of Chinese import / export figures.

The overall Trade Balance figure for November came in well below analysts’ expectations, but the key monthly Imports statistics was a lot better than expected.

The big near-term risk event for the Kiwi is tomorrow evening’s Reserve Bank of New Zealand’s monetary policy announcement – with a cut in interest rates expected, the outlook for the New Zealand unit is NEUTRAL TO NEGATIVE. GBP NZD stands at 2.2610.

Eurozone GDP Boosts Euro Demand Today

The EURO (currency : EUR) bullied the Pound during today’s session following the publication of euroland Gross Domestic Product data earlier.

The keynote release confirmed that the euro area’s economy expanded by a year-on-year 1.6% during the three months to the end of September.

Tomorrow morning’s German Trade Balance data is the next release of note for the shared currency; in the meantime, analysts expect the euro to trade on a NEGATIVE footing.

The GBP EUR exchange rate stands at 1.3740.

Futures Price in 80% Chance Fed will Hike Cash Rate on December 16th

US DOLLAR (currency : USD)-holders will be pleased with the current price action for the Buck.

The Sterling Dollar exchange rate has once again tested lower on the day and at one point looked likely to break back down into the 1.4800s.

Futures markets are pricing-in a near 80% chance that the Federal Reserve will be hiking its key interest rate on 16th December - the Greenback is therefore expected to trade on a POSITIVE footing in the near-term.

The GBP USD exchange rate currently sits at 1.4996.

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