Today?s Currency Rate Forecasts For The US Dollar, Euro, Pound Sterling and Australian Dollar

Published: Tuesday, 24 April 2012 18:00 BST - Written by John Cameron

STORY LINK Today?s Currency Rate Forecasts For The US Dollar, Euro, Pound Sterling and Australian Dollar

This morning’s UK public sector borrowing data showed higher than anticipated borrowing levels, suggesting that Britain’s coalition government is struggling to bring the country’s budget deficit under control. The POUND STERLING has had no more than a moderate day as a consequence, and is expected to trade on a NEUTRAL footing ahead of tomorrow morning’s key Q1 UK GDP data, which is likely to be market-moving.

The EURO has come in for concerted support on the day, for the first time in several sessions, as European stocks clawed back a portion of the losses which they incurred yesterday. Market participants have chosen to set fears over political turmoil to one side, concentrating instead on Italian and Spanish bond spreads, which are drifting lower. The GBP EUR exchange rate stands at 1.2226 and the single currency is expected to trade with a NEUTRAL TO NEGATIVE bias in the near-term.

The US DOLLAR has shown further signs of weakness since this afternoon’s New York open, thanks to gains for global stocks, which has caused a shift out of safe havens. However, the Greenback may benefit from this afternoon’s weaker than anticipated US Consumer Confidence survey. The US currency is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward. The GBP USD rate stands at 1.6141.

The AUSTRALIAN DOLLAR has suffered further losses on the day, taking the GBP AUD exchange rate to 1.5728, its highest level this year. Selling pressure on the Aussie was driven by last night’s lower than expected Australian Q1 inflation data, which gives the Reserve Bank of Australia leeway to cut interest rates in the near-term. The AUD heads into tomorrow’s session on a NEUTRAL TO NEGATIVE footing.

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 Currency Predi Forecasts