Pound Sterling FX Currency Forecast vs EUR USD NZD - BoE News Boosts GBP

May 11, 2016 - Written by Ben Hughes

STORY LINK Pound Sterling FX Currency Forecast vs EUR USD NZD - BoE News Boosts GBP

The Pound has made major gains against most of its rivals today, owing to fears about BoE interest rate cuts turning out to be unfounded.

Midday tomorrow will see the announcement of the latest Bank of England interest rate decision, which is expected to remain at 0.50%.

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Negative

Poor UK macroeconomic data this week threatens to weigh down the POUND STERLING (currency : GBP) into the medium term.

This morning’s Office of National Statistics data, which revealed that UK industrial production shrank by 0.4% during Q4 2015 – the same amount as in Q1 2015 – raises fears of another domestic recession.

omorrow’s Bank of England ‘Super Thursday’ will be seminal – in the meantime, the outlook for Sterling is NEUTRAL TO NEGATIVE.

Euro (EUR) Exchange Rate Outlook Neutral to Negative

The EURO (currency : EUR) has firmed a little against the Pound during today’s session.

Tomorrow morning’s whole of eurozone Industrial Production statistics are the next risk event of note from the euroland; a month-on-month showing of above zero percent will be enough to beat analysts’ expectations and favour the euro.

However, with a monthly €80bn worth of Quantitative Easing weighing down the shared currency, analysts forecast a NEUTRAL TO NEGATIVE performance in the short term.

The GBP EUR exchange rate stands at 1.2660.

US Dollar (USD) Exchange Rate Outlook Neutral to Positive

The US DOLLAR (currency : USD) continues to hold firm against the Pound.

The forecast from leading investment bank Goldman Sachs earlier today that the Buck will improve by 15% over the next two years has helped erase the memory of last Friday’s highly disappointing American job creation figures.

This Friday afternoon’s US Advance Retail Sales data is expected to be market-moving; in the meantime, the Greenback is expected to trade on a NEUTRAL TO POSITIVE footing.

The Pound Dollar exchange rate stands at 1.4447.

Ne Zealand Dollar (NZD) Exchange Rate Outlook Neutral

The NEW ZEALAND DOLLAR (currency : NZD) has outperformed Sterling so far today.

Chinese Producer Price Index data, which pointed to a lower than anticipated drop in factory gate prices last month, has triggered optimism that the falling pace of Chinese price rises may now be working its way through.

This positive news for New Zealand’s exporters helped the Kiwi Dollar, which is now expected to trade with a NEUTRAL bias moving forward.

The GBP NZD exchange rate stands at 2.1238.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

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