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

1 Sep 2011 at 2 PM - Written by John Cameron

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

POUND STERLING

This morning’s PMI survey showed that the UK’s manufacturing output continued to contract last month as demand for British exports in foreign markets dropped off. With the latest Halifax house price survey showing an unexpected dip in UK property prices, most analysts would have expected the Pound to come under selling pressure. However, the Pound has shown some resilience to hold its own against the other majors. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6221

This afternoon’s US employment sector data came out broadly as per expectations, showing that conditions in the American market remain soft. If tomorrow’s Non-Farm Payrolls figure confirms that job generation in the world’s leading economy remains slow, then institutional investors may turn against the Greenback, halting its recent forward move in the currency markets. NEAR-TERM OUTLOOK – NEUTRAL.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1351

The Euro has come under some selling pressure in the currency market today following this morning’s release of finalised German GDP figures for the three months to June. The numbers showed that German exports remained strong during this period, however other components of the numbers hinted at weakness in Germany’s domestic economy – bad news for the Eurozone as a whole and for its single currency. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5147

Chinese manufacturing figures, released during last night’s Asian session, came out worse than had been anticipated, which is never good news for Australian exporters and European equities markets have lost ground so far today, hinting a softening in appetite for risk. The high-yielding Australian Dollar has not suffered any significant downside as of yet, however further disappointing data releases, or stock market losses, could cause the Aussie to come under selling pressure. NEAR-TERM OUTLOOK – NEUTRAL.


CANADIAN DOLLAR– The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.5843

The Canadian Dollar has enjoyed a strong start to today’s session, causing the GBP CAD rate to drop by almost a cent from its overnight high at one point. The move has partly been driven by a move forward in the price of crude oil over the past few sessions and by yesterday’s better-than-anticipated US Factory Orders data, hinting at a potential for strong future demand for Canadian commodities. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


For other live currency exchange rates and a currency converter see the currency news website.

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