Pound Sterling Exchange Rate News: GBP Lower Vs New Zealand Dollar, US Dollar, Euro

Modified: Monday, 19 September 2016 13:05 BST - Written by Tim Boyer

STORY LINK Pound Sterling Exchange Rate News: GBP Lower Vs New Zealand Dollar, US Dollar, Euro

Pound Sterling (GBP) Exchange Rates Weaker on Fresh Brexit Concerns

After advancing towards the end of August and beginning of September, Pound Sterling (GBP) exchange rates declined dramatically last week with the GBP EUR and GBP USD exchange rates falling.

The POUND STERLING (currency : GBP) ended last week’s session under sustained selling pressure following the assertion from European Commission President Jean-Claude Juncker that the United Kingdom cannot continue to access the Single Market without accepting complete freedom of movement of labour. This, coupled with European Council President Donald Tusk’s weekend suggestion that Britain may trigger article 50 of the Lisbon Treaty - and begin the process to exit the European Union - as soon as January, means that the outlook for Sterling is NEGATIVE.

New Zealand Dollar (NZD) Exchange Rate Outlook Neutral

An official survey published by the People’s Bank of China (PBoC) showing that business confidence in Asia’s largest economy had increased by a hefty 2.2% during Quarter 3 compared to Quarter 2 may help the export-driven NEW ZEALAND DOLLAR (currency : NZD) exchange rates today. However, the Kiwi unit will require another decent showing from tomorrow’s GlobalDairyTrade auction results to continue its positive momentum; the main event for holders of the New Zealand unit comes on Wednesday night with the latest policy decision from the Reserve Bank of New Zealand (RBNZ). The outlook for the Kiwi is NEUTRAL TO POSITIVE and the GBP NZD exchange rate sits at 1.7890.

Neutral-Negative Bias for Pound Sterling US Dollar (GBP USD) Conversion Rate on Fed Decision

In terms of this week's exchange rate outlook, the Pound Sterling to US Dollar (GBP USD) currency pair is liable to record considerable volatility.

The chances of an increase in America’s cost of borrowing were elevated by Friday afternoon’s higher than anticipated US inflation figures. The US DOLLAR (currency : USD) gained ground against all of the other major global currencies as a consequence, but the money markets were not as impressed as the currency markets and price-in a less than 20% chance that the Federal Reserve will hike rates this week. The Pound Dollar exchange rate stands at 1.3004 GBP USD and the Buck is forecast to trade with a NEUTRAL bias in the short term.

Neutral-Positive Outlook for Euro (EUR) Currency Trading This Week

In the absence of any tier one data releases from the euroland this week, the EURO (currency : EUR) is expected to range-trade against the other major tenders. Nonetheless, Thursday’s Economic Bulletin from the European Central Bank (ECB) and Friday’s whole of eurozone Manufacturing and Services Purchasing Managers Indices are forecast to be market-moving. After a constructive European Union summit in Bratislava at the end of last week, the shared currency is predicted to trade on a NEUTRAL TO POSITIVE footing this week and the GBP EUR exchange rate stands at 1.1688.

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