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

Published: Thursday, 20 October 2011 14:39 BST - Written by John Cameron

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

POUND STERLING

UK Retail Sales figures for September, released earlier today, significantly bettered analysts expectations, both on a monthly and an annualised basis. However, Sterling has lost ground on the day against almost all of the other majors. The old market adage states that, ‘what should go up and doesn’t go up can only come down’, so the next few sessions could prove difficult for the Pound. NEAR -TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5745

The Greenback has traded no more than steadily in the currency markets so far today. Asian and European stocks have registered losses over the past 24 hours, however the US Dollar has failed to make significant gains. The Dollar’s failure to gain ground appears to be driven by technical and not fundamental factors. NEAR-TERM OUTLOOK – NEUTRAL.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1460

The Euro has performed weakly on the markets today as investors show their displeasure at rioters in Athens who are protesting at the new round of austerity measures. Meanwhile, there was further bad news for investors holding Euro-denominated assets as German officials cut their domestic growth forecast for next year from 1.8% to 1%. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5398


The Australian Dollar has lacked direction on the day. Losses for stock markets over the past 24 hours have not been sharp enough to cause a panic move away from the high-yielders, but risk sentiment remains subdued, limiting any forward move for the Aussie. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


CANADIAN DOLLAR– The Pound Canadian Dollar exchange rate (GBP/CAD) is 1.6045

The Canadian Dollar has outperformed almost all of its counterparts in the market today. In spite of ugly scenes in Greece’s capital earlier, most analysts believe that European policy-makers will ‘do the right thing’ and beef-up the Eurozone’s bail-out package. This will benefit the commodity-export dependent Canadian Dollar, as Europe is one of Canada’s major oil export markets. The CAD may enjoy a mini-relief rally on the back of this and strengthen-up over the next few sessions. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


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