Pound Sterling Currency Outlook against Euro, US Dollar & New Zealand Dollar - Pound may be flat tomorrow

May 18, 2016 - Written by James Fuller

STORY LINK Pound Sterling Currency Outlook against Euro, US Dollar & New Zealand Dollar - Pound may be flat tomorrow

Sterling may be low against its peers tomorrow, on account of prior profit-taking lowering the Pound's overall value.

The Pound has jumped against virtually all of its competitors today, due to recent polling data from Ipsos Mori that has put the 'Remain' group as likely winners of the EU Referendum vote.

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Negative

The POUND STERLING (currency : GBP) did not suffer unduly yesterday, despite the morning publication of a significantly lower than anticipated set of domestic inflation figures.

However, with opinion polls continuing to suggest that the UK EU in / out referendum remains too close to call, the Pound stays firmly in the danger zone.

Look out for this morning’s British jobs data to provide further direction for the UK unit, which is now forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward.

Euro (EUR) Exchange Rate Outlook Negative

The EURO (currency : EUR) eased against the US Dollar yesterday, sending the world’s most liquid currency pairing – EUR USD – down into the low 1.1300s.

This morning’s whole of eurozone inflation statistics are the next risk event of note for the shared currency – a print of above the expected year-on-year result of -0.2% would help assuage euro-holders’ frayed nerves.

However, a confirmation that the euroland remains in a deflationary funk could cause further harm.

The outlook for the euro is NEGATIVE and the GBP EUR exchange rate stands at 1.2775.

US Dollar (USD) Exchange Rate Outlook Neutral to Positive

The US DOLLAR (currency : USD) improved against the Pound as yesterday’s session wore on thanks to official data pointing to higher levels of US price inflation last month.

US Federal Reserve Chair Janet Yellen also helped the Buck by insisting that next month’s Fed policy meeting is a ‘live’ one – meaning that a decision to further tighten policy could be announced.

The outlook for the Greenback is NEUTRAL TO POSITIVE and the GBP USD exchange rate stands at 1.4440.

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

The NEW ZEALAND DOLALR (currency : NZD) was provided with a fillip by yesterday afternoon’s GlobalDairyTrade auction results which showed an increase in the hammer price of Whole Milk Powder (WMP) for the fourth auction on the trot.

WMP remains the number one Kiwi export thanks to strong levels of demand from China; any suggestion that the giant former Communist economy is heading for a hard landing will hurt the Kiwi Dollar.

In the meantime, the outlook for the New Zealand unit is NEUTRAL TO POSITIVE and the GBP NZD exchange rate stands at 2.1222.

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