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

27 Sep 2011 at 2 PM - Written by John Cameron

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

POUND STERLING

This morning’s CBI Reported Sales figure for September showed a contraction since August’s counterpart number, providing more reasons for investors holding Sterling-denominated assets to worry. There was more bad news for the Pound when defence systems company BAE confirmed that it will be cutting almost 3,000 jobs across the UK. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5670

The Dollar has continued to weaken throughout today’s session as global investors rediscovered their appetite for risk and share markets once again tentatively edged forward. The improvement in investment sentiment has been triggered by rumours that the European Central Bank is set to introduce a scheme which will see European governments swap distressed sovereign debts for bonds which will be redeemable with the ECB. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1511

The Euro has continued to push forward against the Dollar as investors take heart from developments regarding a rumoured beefing-up of the European Central Bank’s bail-out fund. The Euro gained further ground overnight when Japanese Finance Minister, Jun Azumi, hinted that Japan would be willing to contribute to a potential bail-out package for Greece which might allow the debt-addled Hellenic state to avoid defaulting on its debt obligations. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5775

The Australian Dollar has garnered significant support in the currency markets over the past 24 hours as global investors regained their appetite for risk. Risk aversion has subsided as governments and institutions from Japan to Washington show their determination to tackle the Eurozone’s sovereign debt crisis. With stock markets in the UK, Europe, North America and Asia registering gains throughout yesterday and today, it looks likely that the GBP AUD rate has now experienced a key reversal following its brief incursion above 1.60 yesterday. NEAR-TERM OUTLOOK – POSITIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP/CHF) is 1.4043

The Swiss Franc has come under selling pressure in the currency markets during today’s session following the release of domestic data for August which showed that Swiss consumption dropped to its lowest level in nearly two years. The Swiss Franc has been under heavy selling pressure since the Swiss National Bank instigated a lower limit of 1.2000 on the EUR CHF rate – today’s data makes the Franc an even less appealing option. NEAR-TERM OUTLOOK – NEGATIVE.


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

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