Forex Forecast : Rate Predictions For GBP, USD, EUR, AUD, NZD

(Currency News)- POUND STERLING

This morning’s UK inflation data surprised analysts, showing that the headline CPI measure of UK inflation had dropped last month, against expectations. Downward pressure on Sterling was accentuated by trade data, also released this morning, which showed that the UK’s trade gap widened in May. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.

US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5864

The Dollar enjoyed significant support in the market in early trading today, following comments by President Obama which warned of the dire consequences for the US economy of a failure by US policy-makers to reach agreement on raising the US debt ceiling. With ongoing fears that the Eurozone’s sovereign debt situation may be about to spread taking equities markets lower, the Dollar may see further safe-haven support in coming sessions. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.  Read more here…