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Exchange Rate Forecasts for the Pound (GBP), Euro (EUR), New Zealand Dollar (NZD) & US Dollar (USD)

January 25, 2016 - Written by Toni Johnson

Foreign exchange rate markets find a packed data schedule this week, with tier one statistics penned in for publication in at least four major economies.

Our leading analyst explores the predicted effect which these releases will have on the Pound Sterling, the euro and the US dollar.

Sterling-holders will be nervously eyeing Thursday’s UK Gross Domestic Product data for Q4 2015 to provide further evidence regarding the relative health of the UK economy.

The UK was hailed as the best-performing of the G8 economies during the middle part of last year but the intervening period has seen analysts downgrade their predictions for the UK economy’s future performance. Market insiders predict that the official figures will show at a similar level to the Q3 results which printed at an annualised 2.1%.

Anything significantly below this and the Pound is expected to give up most of the gains which it recorded against the US Dollar (currency:USD) and the euro (currency:EUR) during the second half of last week.

Yesterday's exchange rates saw the Pound Australian Dollar exchange rate close at 2.05208 GBP/AUD, Pound Canadian Dollar exchange rate close at 2.03628 GBP/CAD, Pound Swiss Franc exchange rate close at 1.44195 GBP/CHF, Pound Euro exchange rate close at 1.31219 GBP/EUR, Pound New Zealand Dollar exchange rate close at 2.21134 GBP/NZD, Pound Turkish Lira exchange rate close at 4.30380 GBP/TRY, Pound US Dollar exchange rate close at 1.42407 GBP/USD, and the Pound South African Rand exchange rate close at 23.56730 GBP/ZAR.

Euro (EUR) Exchange Rate Today: Eurozone and German Inflation to Stimulate Euro Movement this Week

This week also brings the publication of key inflation figures from the euroland and Australia.

German and whole of eurozone Consumer Price Index numbers are out on Thursday and Friday respectively and the January figures are expected to show that core inflation remains at or around the 1.0% level.

A showing of below this will hit the shared currency hard, given European Central Bank President Mario Draghi’s promise of last week to re-assess his Bank’s Quantitative Easing programme in March.

The Q4 Aussie inflation numbers are released during the early hours of Wednesday morning, with a year-on-year result of below Q3’s 1.5% guaranteed to trigger renewed selling pressure for the Australian unit.

Pound to New Zealand Dollar (GBP/NZD) Exchange Rate to see Movement in Response to RBNZ Rate Decision

Elsewhere, analysts forecast movement for the Pound Sterling against the New Zealand Dollar (currency : NZD) on Wednesday evening, when the Reserve Bank of New Zealand (RBNZ) makes its latest monetary policy announcement.

Analysts expect the RBNZ to leave its Official Cash Rate at its current level of 2.5%, but a surprise cut cannot be ruled out given the continuing plunge in global commodities prices. Such an outcome would send the Pound Kiwi exchange rate edge higher.

If the central bank even hints that an interest rate hike is on the way, the Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate could extend gains.

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TAGS: Euro Forecasts Pound Dollar Forecasts Pound Euro Forecasts Pound Sterling Forecasts

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