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

Modified: Wednesday, 16 May 2012 14:24 BST - Written by David Woodsmith

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

The Bank of England slashed its forecast for UK growth for this year from 1.2% to 0.8% earlier today, hitting the POUND STERLING. With the UK tender riding high at the top if its recent range against a host of currencies, a broad move to the downside is possible, meaning that GBP heads towards tomorrow’s session on a NEUTRAL TO NEGATIVE footing.


The EURO has suffered once again today, as fears increase that Greece may be gearing itself up for a disorderly exit from the eurozone. The Bank of England’s Governor, Mervyn King, did not help matters, when he twisted the knife into the beleaguered region when he observed earlier today that it was ‘tearing itself apart’. The current GBP EUR exchange rate stands at 1.2512 and it is anticipated that the euro will trade with a NEGATIVE bias for some time to come.


Institutional investors are starting to come out in favour of the US DOLLAR, as fears grow over the future of Greece’s perilous finances. It appears that, when push comes to shove, the Greenback is still the world’s first choice safe haven currency. With share markets extending their recent losses on the day, the Dollar is expected to trade on a NEUTRAL TO POSITIVE footing moving forward. The current GBP USD exchange rate is 1.5936.


The AUSTRALIAN DOLLAR has taken a hammering in the currency markets in recent sessions, as investors scale back their exposure to risk in anticipation of a possible ‘hard default’ by Greece. With further interest rate cuts expected from the Reserve Bank of Australia as the year progresses, the future prospects for the Aussie are NEGATIVE. The GBP AUD exchange rate is 1.6027.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts