Exchange Rate Forecasts 2015: Pound (GBP), Euro (EUR), US Dollar (USD), New Zealand Dollar (NZD), Canadian Dollar (CAD) and Australian Dollar (AUD) - Sterling (GBP) stabilised early on Friday as an on target GDP figure prevented further declines. UK housing data was seen to show stagnation in the London market which prevented any paring of yesterday’s losses. A US durable goods print provides direction with regard to the US Dollar.
At 10:00am (UK Time) on Friday Sterling (GBP) values were such that the Pound Euro exchange rate was 1.2622 (+0.06%), Pound Dollar exchange rate was at 1.6972 (-0.10%), Pound Canadian Dollar exchange rate was at 1.8272 (+0.09%), Pound Australian Dollar exchange rate was at 1.8043 (+0.02%), Pound to New Zealand Dollar exchange rate was at 1.9862 (+0.31%) and Pound Yen rate was at 172.97 (+0.04%).
Pound Sterling (GBP) gained with the Gross Domestic Product (GDP) print coming in bang on forecast on Friday.
The Year on Year figure came in at 3.1% which gave the Pound a degree of stability and prevent further losses after yesterday’s decline in value.
The tangible improvement in the economy was attributed by Chancellor George Osborne to the hard work of the nation, saying "Thanks to the hard work of the British people, today we reach a major milestone in our long term economic plan. But there is still a long way to go – the 'great recession' was one of the deepest of any major economy and cost Britain six years.”
The Euro (EUR) saw downside during the day after a below forecast set of data prints. German IFO Current Assessments came in at 112.9, significantly below the 114.5 expectation. The Euro is expected to suffer further during the next 12 months by most analysts as the UK economy picks up and the Euro-zone struggles to any tangible signs of improvement.
The US Dollar (USD) saw the Durable Goods Orders print yesterday for the month of June. This key figure was forecast to come in at 0.4%, with any undershooting of this figure undermining all the previous value gain by USD over the previous few days of trading. The data proved to be strong as predicted and saw the strentheneing of the American currency.
Whilst the US economy appears to be recovering analysts remain cautious. Adam Cole head of Currency Strategy at Royal Bank of Scotland stated “The market has a predisposition to buy dollars and the consensus is very dollar-bullish across the board.” however “We’re a bit skeptical how much traction the dollar can find until you get some proper upside for U.S. rate expectations.”
The New Zealand Dollar (NZD) has given up recent gains despite an increase in the base rate of interest to 3.5%, thanks to a Graeme Wheeler (Reserve Bank of New Zealand Governor) statement that the currency remains overpriced and that no further rate hikes are foreseen in the near term future. Wheeler is keen to keep the price of the “Kiwi” low to make New Zealand exports more competitive and expedite the economic recovery in the country.
Whilst Wheeler has a predisposition for statements designed to keep the New Zealand currency price low, analysts have taken heed. Sam Tuck currency strategist at ANZ Bank said “It’s definitely a warning shot that they do have tools that they could use if they believe it’s necessary; the level of the currency is becoming a lot more important for the RBNZ.”
Latest Pound Sterling Exchange Rates - Updated 28/07/2014
The Pound to Australian Dollar exchange rate is trading down -0.02% at 1.80612 GBP/AUD.
The Pound to Canadian Dollar exchange rate is trading down -0.03% at 1.83539 GBP/CAD.
The Pound to Swiss Franc exchange rate is trading down -0.08% at 1.53541 GBP/CHF.
The Pound to Euro exchange rate is trading down -0.07% at 1.26364 GBP/EUR.
The Pound to New Zealand Dollar exchange rate is trading up +0.06% at 1.98667 GBP/NZD.
The Pound Sterling to Turkish Lira exchange rate is trading up +0.12% at 3.56001 GBP/TRY.
The Pound to Dollar exchange rate is trading down -0.01% at 1.69793 GBP/USD.
The Pound to Rand exchange rate is trading up +0.06% at 17.86855 GBP/ZAR.