Pound Sterling (GBP) Exchange Rate Forecast vs EUR, USD NZD Outlook - EU Referendum Allows Sterling Gains

June 1, 2016 - Written by James Fuller

STORY LINK Pound Sterling (GBP) Exchange Rate Forecast vs EUR, USD NZD Outlook - EU Referendum Allows Sterling Gains

GBP has increased in value overall today, with Labour's entry into the EU Referendum debate on the 'Remain' side providing notable support.

The Pound has been a poor option against most of its rivals lately, due to the latest EU Referendum polls putting a 'Brexit' vote as the more likely outcome.

Pound Sterling (GBP) Exchange Rate Outlook Neutral to Negative

The POUND STERLING (currency : GBP) was pummelled during late trading yesterday as investors priced in the weekend opinion polls which suggest that the ‘Brexit’ campaign is narrowing its deficit in next month’s European Union referendum race.

This morning’s April UK Mortgage Approval data is the next risk event of note for the Pound.

In the meantime, the British unit is forecast to trade with a NEUTRAL TO NEGATIVE bias.

Euro (EUR) Exchange Rate Outlook Neutral to Negative

Support for the EURO (currency : EUR) once again held steady yesterday in spite of the latest whole of Eurozone Consumer Price Index data which revealed that the pace of price rises in the euroland remains in negative territory.

This morning’s Markit Purchasing Managers Index survey of the euroland’s manufacturing sector could be market-moving for the shared currency, but fears persist that the European Central Bank’s Quantitative Easing programme could weigh it down into the medium term; we will find out more when the ECB announces its latest policy decision on Thursday.

For now, the outlook for the euro is NEUTRAL TO NEGATIVE and the GBP EUR exchange rate stands at 1.3040.

US Dollar (USD) Exchange Rate Outlook Neutral

A poor showing from yesterday afternoon’s US Consumer Confidence survey held back the US DOLLAR (currency : USD) during the afternoon session.

Data pointing to a slight year-on-year increase in the level of Core Personal Consumption, published at lunchtime yesterday, was not unexpected and so already largely factored-in to Dollar-pricing.

The big event still looms for Dollar-holders – the US Federal Reserve will make its latest policy announcement in two weeks.

With US interest rates likely to remain on hold for a little longer, the outlook for the Buck is NEUTRAL. The GBP USD exchange rate stands at 1.4552.

New Zealand Dollar (NZD) Exchange Rate Outlook Neutral

Holders of the NEW ZEALAND (currency : NZD) will be eagerly awaiting the results of this afternoon’s GlobalDairyTrade auction.

As ever, the Whole Milk Powder (WMP) hammer price is all-important for the Kiwi; an improvement from last month’s result of NZD2,252 will be required to help the New Zealand unit improve against the Pound.

The latest Pound Sterling Kiwi Dollar exchange rate is 2.1529 GBP NZD and the outlook for the New Zealand tender is neutral.

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