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

Published: Wednesday, 16 November 2011 15:58 BST - Written by John Cameron

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

POUND STERLING

This morning brought more depressing news regarding the British economy; UK unemployment grew by almost 130,000 in quarter 3, whilst the Bank of England’s inflation report stated that the bank expected little or no economic growth in the UK until the middle of next year. NEAR -TERM OUTLOOK – NEUTRAL TO NEGATIVE.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5779

The Dollar has continued to firm on the day as global stock indices drift downwards. This afternoon’s US inflation numbers came out broadly in line with expectations, showing a slight annual drop-off in American price rises, however the Federal Reserve’s stance on monetary policy is likely to remain ultra-loose for years to come. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1667

EC President Jose Manuel Barroso once again proved that he is not shy of making dramatic statements when he spoke earlier today, warning of a ‘systemic crisis’ in the Eurozone. Barroso’s proposed solution to this was increased integration in the single economic area. The pressure on the Euro fails to ease. NEAR-TERM OUTLOOK – NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5567


The Australian Dollar has remained out of favour in the currency markets today. The minutes of the latest Reserve bank of Australia monetary policy meeting, released last night, showed that the RBA interest rate cut was a close-run decision, suggesting that further cuts are unlikely in coming months. NEAR-TERM OUTLOOK – NEUTRAL.


SINGAPORE DOLLAR – The Pound Singapore Dollar exchange rate (GBP/SGD) is 2.0393

The GBP SGD rate broke to an 8-month high last Friday, touching off the 2.0700 level. The pair has rapidly traded back down into the 2.03s today, suggesting that a key reversal may have taken place. The SGD has moved in the same direction as the USD in recent times, benefitting when institutional investors lose their appetite for Asian stocks. With further turbulence seemingly assured in equities markets, a break back below the 2.00 level for GBP SGD can not be ruled out. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


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