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

November 9, 2011 - Written by John Cameron

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

POUND STERLING

UK Trade Balance figures for September, released earlier, showed that Britain’s trade deficit is widening. On a normal day, this would spell bad news for the Pound. However, events elsewhere have meant that this is far from a normal day and the disappointing data did not stop the Pound Euro rate spiralling to an 8-month high. NEAR -TERM OUTLOOK – NEUTRAL TO POSITIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5947

The Dollar is on the march once again today. Appetite for risk amongst investors has drained away over continuing doubts about Italy’s finances. The Greenback could be further supported if Fed Chairman Ben Bernanke delivers a pessimistic message during his et-piece speech this afternoon. NEAR-TERM OUTLOOK – POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1715

The Euro has come under heavy selling pressure during today’s session, sending the GBP EUR exchange rate to a new 8-month high. Investors are severely concerned about the interest rate that the Italian government is having to pay to service its debt – the yield on 10-year Italian bonds has risen above 7% - the highest level since the Euro was instigated in 1999.NEAR-TERM OUTLOOK – NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5589

Predictably, the Australian Dollar has been one of the worst performing currencies over the past 24 hours, as institutional investors have scaled back their exposure to risk. Tonight’s domestic employment data could cause further downside for the Assie if it shows that5 less than 10,000 jobs were generated in Australia’s country last month. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP/CHF) is 1.4422

The Franc has performed well on the day, gaining safe-haven support as risk aversion floods back into the market. However, both the Yen and US Dollar have out-performed the Swissie, signalling investors’ wariness regarding Switzerland’s currency, thanks to ongoing fears that the Swiss National Bank may escalate their policy of active intervention at any time. NEAR-TERM OUTLOOK – NEUTRAL.


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