Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, CAD

Published: Monday, 10 October 2011 14:43 BST - Written by John Cameron

STORY LINK Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, CAD

POUND STERLING

Sterling has performed poorly against all of the major currencies, with the exception of the low-yielding reserve currencies, so far today. With no UK data of note released on the day, the move has come as a delayed response to last Thursday’s surprise decision by the Bank of England to extend its Quantitative Easing scheme. NEAR -TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5650

A rare day without any US data releases has caused the US Dollar to drift in the markets. A positive day for global shares, following Friday afternoon’s highly positive US jobs data, has caused global investors to shift their funds out of the safe haven of the US treasury bill, sending the Dollar lower against the other majors on the day. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1494

This morning saw the release of a slew of Eurozone economic data. Most of the releases were second tier, but German export data showed its first increase for three months, causing some support for the Euro. The real move for the Euro will come when French and German policy-makers announce their Eurozone debt rescue package, at some stage prior to next month’s G20 summit in Cannes. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5721


The Australian Dollar has surged forward once again today, causing the GBP AUD rate to drop by over 1%. This move has been driven by an increase in global investors’ appetite for risk following Friday’s better-than-anticipated US Non-Farm Payrolls figure. If Eurozone policy-makers announce a plausible plan for extricating debt-addled member states from the ongoing debt crisis, then the Aussie may make a run at the multi-decade highs it touched in the summertime. NEAR-TERM OUTLOOK – POSITIVE.


CANADIAN DOLLAR– The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.6083

The Canadian Dollar has garnered some support since last Friday’s release of positive jobs data by its major trading partner, the US. With little Canadian data of significance due for release this week, the US Federal Reserve’s minutes of its most recent FOMC meeting, released tomorrow evening, will be more closely-watched than normal by investors with Canadian interests. Friday’s US Retail Sales and Michigan Confidence survey will also affect levels of support for the CAD. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


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