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

Published: Tuesday, 23 August 2011 15:03 BST - Written by John Cameron

STORY LINK Forex Forecast : Rate Predictions For GBP, USD, EUR, AUD, SGD

POUND STERLING

Some positive UK data released today has failed to cause a move forward for the Pound, signalling that market participants are still concerned about rock-bottom UK interest rate expectations. Last night’s CBI Trends Total Orders data beat expectations as did this morning’s CBI Trends Selling Prices figure, however Sterling continues to trade sideways against the other majors. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6516

The Dollar has once again suffered in the currency markets during today’s European session as investors fret about rumours that Fed Chairman Ben Bernanke is set to make an announcement regarding a third tranche of quantitative easing for the US economy on Friday. This afternoon’s US housing sector data could cause further downside for the Greenback. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1465

Weak Eurozone data releases this morning have failed to dent support for Europe’s single currency. The German ZEW Survey of economic sentiment came out drastically worse than expected, showing a marked drop from July’s number and the German PMI Services figure also disappointed, however the Euro has more than held its own as investors take heart from the failure of the Eurozone debt crisis to worsen. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5761


A positive performance for global equities markets over the past 24 hours has seen the Australian Dollar enjoy gains against almost all of the other majors. The increase in share prices has been caused by support for energy-related stocks as investors anticipate a return to normal trading conditions for the world’s twelfth largest oil exporter, Libya. However, a renewed flare-up in the Eurozone’s ongoing sovereign debt crisis could see the Aussie rapidly lose ground. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


SINGAPORE DOLLAR – The Pound Singapore Dollar exchange rate (GBP/SGD) is 1.9907

Figures released last night showed that Singapore’s headline CPI measure of inflation accelerated to an annualised 5.4% last month, its highest level since January. The Singie has been the best-performing Asian currency apart from the Yen over the past year, as the city state’s central bank allowed it to strengthen in order to tame domestic inflation. However, last night’s figure suggests that this tack is not working and more conventional tightening of monetary policy may be required, providing further support for the Singapore Dollar. NEAR-TERM OUTLOOK – POSITIVE.


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