Pound Sterling Exchange Rate Shift Forecast vs EUR USD NZD

May 16, 2016 - Written by David Woodsmith

STORY LINK Pound Sterling Exchange Rate Shift Forecast vs EUR USD NZD

The Pound may be in store for a rise in the near-future, if the unemployment rate for March falls against forecasts of stagnation.

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Negative

The POUND STERLING (currency : GBP) continued to trade sideways last week as investors await next month’s all-important EU in / out referendum in the UK.

The opinion polls remain neck and neck, but last week’s assertion by Bank of England (BoE) Governor Mark Carney that British interest rates could be cut again may weigh on the Pound into the medium term, whatever the outcome of the popular vote.

Sterling is forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward.

Euro (EUR) Exchange Rate Outlook Neutral to Positive

A dearth of tier one data releases from the euroland this week is unlikely to equate to a lack of movement for the EURO (currency : EUR).

Wednesday’s whole of eurozone Consumer Price Index data is likely to provoke price action for the single currency, with an increase from last month’s counterpart figure providing evidence that the European Central Bank’s Quantitative Easing programme is working.

The euro is forecast to trade with a NEUTRAL TO POSITIVE bias and the Pound euro exchange rate stands at 1.1668.

US Dollar (USD) Exchange Rate Outlook Neutral to Negative

Friday afternoon’s brace of strong data sets from the States helped the US DOLLAR (currency : USD) end the week on a high.

A better than anticipated showing from the monthly Michigan Confidence Index suggests that US market sentiment continues to improve. However, any suggestion from the Federal Reserve’s policymakers that US interest rates will increase again soon could send the Buck into reverse.

The outlook for the Greenback is NEUTRAL TO NEGATIVE and the GBP USD exchange rate stands at 1.4358.

New Zealand Dollar (NZD) Exchange Rate News and Outlook

The near-term fortunes of the NEW ZEALAND DOLLAR (currency : NZD) hinge on tomorrow’s GlobalDairyTrade auction results.

New Zealand’s economic wellbeing remains heavily dependent on the export of dairy products, so another increase in the average hammer price at the fortnightly auction would strongly favour the Kiwi Dollar.

Elsewhere, signs that investor sentiment across all geographical markets is wavering could work against the New Zealand unit.

The outlook for the Kiwi is NEUTRAL and the GBP NZD exchange rate stands at 2.1210.

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