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

Published: Friday, 4 November 2011 15:42 BST - Written by John Cameron

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

POUND STERLING

The Pound has once again played a supporting role in the market today, whilst other currencies take centre stage. With little tier one data due for release in the UK next week, the next risk event of note for Sterling comes in the form of next Thursday’s Bank of England monetary policy decision. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.6019

The Dollar has garnered some safe-haven support this afternoon, following the release of October’s Non-Farm Payroll figure, which showed that only half the number of jobs were created in the world’s leading economy last month in comparison to August. Levels for the Greenback over coming sessions are likely to be determined by events in Greece. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1654

The Euro began the day on the front foot following yesterday’s back-track by Greek Prime Minister Papandreou on his proposal for a Euro bail-out referendum. However, the Euro has fallen back in afternoon trading as uncertainty grows as to who will hold the balance of power in Greece’s parliament come next week. Yesterday’s lowering of interest rates by the ECB has eroded the Euro’s relative yield advantage against the Pound and the Dollar, leaving it at risk. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5484


Support for the Australian Dollar has ebbed and flowed throughout today’s session as global share indices first gained and then quickly lost ground as investors’ opinions changed on whether the Eurozone will be able to come up with a roadmap out of its debt crisis. This afternoon’s weaker than anticipated US Non-Farm Payroll figure could cause a shift out of Aussie-denominated assets as this week’s session draws to a close. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


CANADIAN DOLLAR– The Pound Canadian Dollar exchange rate (GBP CAD) is 1.6322

The Canadian Dollar has performed worse than any of the other majors so far during today’s session. This has partly been due to this afternoon’s disappointing employment data from the US, (Canada’s major trading partner). However, this morning’s Canadian labour market figures were even worse, raising fears that Canada’s economy may be heading for a major slowdown. NEAR-TERM OUTLOOK – NEGATIVE.


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