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

November 14, 2011 - Written by James Fuller

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

POUND STERLING

With no UK data of note due for release this week until tomorrow morning’s CPI Inflation numbers, today’s report by the Chartered Institute of Personnel and Development, which predicted a ‘slow, painful contraction’ in Britain’s labour market, gained increased focus. Overall, a bad day for the Pound. NEAR -TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5908

The Greenback has outperformed all of the other majors, with the exception of the Yen, so far today. Investors have reacted badly to the Italian and Spanish governments’ increased borrowing costs, leading them to seek out the safe haven of the US treasury bill. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1673

The piper may have changed in both Italy and Greece, but the tune which he plays remains the same. A new Prime Minister in the two debt-burdened states has failed to placate the bond markets – the yield on 5 year Italian bonds rose to a record high on the day and Greece continues to pay astronomical rates of interest on its government gilts. Meanwhile, yields on Spanish bonds broke the 6% level for the first time since last Summer. NEAR-TERM OUTLOOK – NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5584

The Australian Dollar showed signs of staging a recovery in early trading today, as Asian equities markets responded positively to leadership changes in both Italy and Greece. However, this turnaround was short-lived, as Italian and Spanish bond yields rocketed as the European session progressed. The minutes of the November Reserve Bank of Australia board meeting, released tonight, could send the Aussie lower, if they are as gloomy as last month’s set. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


CANADIAN DOLLAR– The Pound Canadian Dollar exchange rate (GBP CAD) is 1.6194

The Canadian Dollar has put up a tame showing in the currency markets today. Support for the CAD has been weak, as fears over the effect that the Eurozone debt crisis may have on the global recovery sent the price of oil lower. NEAR-TERM OUTLOOK – NEGATIVE.


For other live currency exchange rates and a currency converter see the currency news website.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Canadian Dolla Forecasts