Pound Sterling (GBP) Outlook vs EUR USD NZD

March 24, 2016 - Written by John Cameron

STORY LINK Pound Sterling (GBP) Outlook vs EUR USD NZD

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Negative

The POUND STERLING (currency : GBP) has been shaken by Tuesday’s terrorist atrocities in Brussels. Analysts suspect that the attacks have had the effect of making a ‘Brexit’ more desirable in the eyes of UK voters and the British unit has suffered as a consequence.

Domestic data pointing to a static pace of UK price rises, published in the early part of the week, have also held back the Pound, which is now forecast to trade on a NEUTRAL TO NEGATIVE footing in the near-term.

Euro (EUR) Exchange Rate Outlook Neutral

The EURO (currency : EUR) improved to its strongest level against Sterling for almost a year and a half during early trade yesterday.

No news was good news for the eurozone tender on the session, with no data releases of note from the euroland.

However, tomorrow morning’s French Gross Domestic Product data could prove market moving; in the meantime, the outlook for the shared currency is NEUTRAL and the GBP EUR exchange rate stands at 1.2616.

US Dollar (USD) Exchange Rate Outlook Neutral to Positive

The US DOLLAR (currency : USD) once again recorded strong gains against the Pound yesterday, sending the GBP USD exchange rate lower by almost 1% by close of business.

Tomorrow afternoon’s Q4 Gross Domestic Product data should once again show at an annualised 1.0% - anything less than this and the Buck will suffer.

However, the medium term forecast for the Greenback remains NEUTRAL TO POSITIVE as analysts expect at least two further Federal Reserve interest rate hikes this year.

The GBP USD exchange rate currently sits at 1.4114.

New Zealand Dollar (NZD) Exchange Rate Outlook Neutral to Positive

The NEW ZEALAND DOLLAR (currency : NZD) traded higher against the Pound yesterday as market participants regained their appetite for risk following the previous day’s terrorist attacks in Brussels.

The unwinding of safe haven positions from investors was one factor supporting the Kiwi on the day and a jump in first half profits from the Fonterra Co-operative Group was another.

The export of soft commodities remains key to the New Zealand economy, so the New Zealand tender is now forecast to trade on a NEUTRAL TO POSITIVE footing moving forward.

The GBP NZD exchange rate stands at 2.1015.

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TAGS: American Dollar Forecasts Euro Forecasts New Zealand Dollar Forecasts Pound S Forecasts