Exchange Rate Outlook: EUR/USD, NZD/GBP, USD/JPY, ZAR/USD

Published: 16 Apr at 10 AM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany, Greece, Japan, South Africa,

Pound Sterling
GBP/USD – Trading Higher
The Pound experienced modest fluctuations yesterday following the release of Rightmove Plc House Price figures, sliding slightly against the US Dollar and gaining on the Euro before paring its advance to trade little changed. After the shocking bombings in Boston the GBP/USD pairing slipped, but the British currency was trading modestly higher this morning prior to the release of the UK’s Consumer Price Index.

US Dollar
USD/JPY – Trading Higher
The US Dollar enjoyed a bullish relationship with its peers yesterday as investors flocked to the safe-haven asset in the wake of growing global economic concerns and a potential act of terrorism in Boston. The US posted mixed data during local trade, adding to indications that the nation’s budget cuts are beginning to have an impact. With the G-20 due to meet this week, and the issue of currency wars a likely point of discussion, the US Dollar advanced notably on the Yen. Significant ‘Greenback’ movement can be expected to follow the release of Eurozone and US Consumer Price Indexes.

Euro
EUR/USD – Trading Lower
With China’s disappointing GDP data knocking risk sentiment, the Euro spent much of the European session trading lower against the US Dollar. The Euro is likely to experience significant volatility in the hours ahead as the Eurozone Consumer Price Index is released. The German ZEW economic sentiment survey, as well as any statements issued during the Greek Finance Minister’s bailout-focused news conference, will also be of interest.

Australian Dollar
AUD/USD – Trading Higher
Disappointing Chinese GDP saw the Australian Dollar drop against its US counterpart by the most for almost 18 months. Declining commodities also weighed on the currency. However, after the RBA released minutes from its most recent policy meeting, the ‘Aussie’ recouped much of the losses sustained earlier. The Australian central bank left rates unaltered but intimated once again that the nation’s inflation outlook means that there is scope to cut borrowing costs.

New Zealand Dollar
NZD/USD – Trading Higher
After tumbling by 2.1 per cent against the US Dollar following sub-par Chinese GDP figures the ‘Kiwi’ clawed back 0.9 per cent during local trade. The currency was able to gain on its main rivals despite being termed ‘overvalued’ by New Zealand’s Finance Minister. Bill English stated that if the New Zealand Dollar continues to trade at recent levels the nation’s exporters will suffer.

Canadian Dollar
CAD/USD – Trading Lower
With China’s GDP data taking a heavy toll on commodity driven currencies, the ‘Loonie’ slumped to a week-low against its safe-haven US counterpart. The Canadian Dollar was also adversely affected as industry experts increased the odds of the Bank of Canada slashing the nation’s growth forecasts at its April 17th meeting. A report published yesterday showed that Canadian existing home sales rose a seasonally adjusted 2.4 per cent in March, but actual sales in the month were down by 15.3 per cent from the same period a year earlier. As commodities continued to fall the ‘Loonie’ plummeted against the US Dollar, posting its largest decline for a year. This afternoon’s Canadian manufacturing shipments and international securities transactions figures could inspire ‘Loonie’ movement, but the US Consumer Price Index will be a more significant cause of volatility.

Japanese Yen
JPY/USD – Trading Lower
The Yen continued to climb on peers including the US, Australian and New Zealand Dollar’s yesterday as investor risk-appetite remained subdued. The Asian currency had also broadly strengthened after the US intimated that it would pressure Japan into preventing any additional Yen depreciation. However, with investors looking ahead to this week’s Group of 20 gathering the Yen lost ground against the US Dollar before the close of local trade.

South African Rand
ZAR/USD – Trading Lower
The Rand slipped to an over three-week low against the US Dollar yesterday as commodity prices fell and risk-aversion continued to dominate the market on the back of disappointing Chinese GDP data. Although news from the Eurozone and US could impact the Rand today investors will also be looking ahead to tomorrow’s South African retail sales figures.

As of Tuesday, 16th April 2013, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.166, GBP USD exchange rate was 1.5365, GBP AUD exchange rate was 1.4796, GBP NZD exchange rate was 1.809, GBP CAD exchange rate was 1.5694, GBP CNY exchange rate was 9.4999, GBP JPY exchange rate was 150.0387, and GBP ZAR exchange rate was 14.023.

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