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

Published: Tuesday, 1 November 2011 17:09 BST - Written by John Cameron

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

POUND STERLING

This morning’s quarterly and annualised UK GDP figures for quarter 3 beat analysts’ expectations, providing a boost for the Pound. However, this was partly offset by a severely disappointing PMI Manufacturing survey, which was released at the same time. Overall it was largely positive day for Sterling. NEAR -TERM OUTLOOK – NEUTRAL TO POSITIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5956

The Greenback has hoovered up a significant amount of safe haven support on the day, as global stock markets and in particular European indices, suffered losses thanks to investor jitters regarding the Eurozone debt crisis. The ‘risk-off’ environment is likely to last for a few sessions at least, raising the possibility of a return to the low 1.50s for the GBP USD rate. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1653

For the second session in succession, the Euro has suffered heavy losses in the currency markets, sending the EUR USD rate lower by over 1%. Investors are now seriously worried about a full-on Greek default, following yesterday’s announcement from the Greek Prime Minister that a referendum on whether to accept the country’s bail-out package is set to take place. NEAR-TERM OUTLOOK – NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5453


The Australian Dollar has come under heavy selling pressure for two reasons over the past 24 hours; firstly, global appetite for risk has ebbed significantly during this period, causing investors to shift out of risk-laden assets including the Aussie. Secondly, the Reserve Bank of Australia surprised the markets with last night’s decision to cut domestic interest rates. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP/CHF) is 1.4172

The Franc has experienced a relatively poor day in the currency markets today, seeing the CHF USD rate drop by the most in 8 weeks. Concerns are deepening regarding the state of Switzerland’s real economy following the release of data earlier today which showed that the country’s manufacturing base contracted by a larger than anticipated amount last month. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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