Foreign Currency Forecast For GBP EUR Exchange Rate And Outlook For USD & AUD

Modified: Monday, 4 February 2013 14:58 BST - Written by David Woodsmith

STORY LINK Foreign Currency Forecast For GBP EUR Exchange Rate And Outlook For USD & AUD

The POUND STERLING has bounced back against almost all of the other major currencies today following Friday afternoon’s virtual capitulation. The move came in spite of a disappointing PMI Construction survey, released this morning. This suggests that the Pound’s mini revival represents a short term technical retracement rather than the beginning of a recovery. For this reason, the outlook for Sterling remains NEUTRAL TO NEGATIVE.

The EURO has given up ground against the Pound and the US Dollar so far during today’s session. This morning’s lower than anticipated reading for the whole of eurozone Sentix Investor Confidence survey set the tone for a disappointing performance and the latest eurozone PPI inflation data did nothing to shunt the euro forward. The current GBP EUR exchange rate stands at 1.1599 and the single currency is expected to trade on a NEUTRAL TO POSITIVE footing in the near term.

The US DOLLAR has slipped against Sterling today, sending the GBP USD exchange rate to 1.5740. Friday’s upwardly-revised US jobs data initially provided support for the Greenback as investors adjusted their positions to reflect a lower percentage chance of more QE for the US economy. However, with global share markets under pressure, it is anticipated that the ‘Buck’ will trade with a NEUTRAL TO POSITIVE bias in the short term.

The AUSTRALAIN DOLLAR has performed with credit on the day, losing only a little ground against Sterling. The strong level of support for the ‘Aussie’ suggests that most investors believe that the Reserve Bank of Australia will elect to maintain its key lending rate at 3.00% tonight. The current GBP AUD exchange rate stands at 1.5082 and the outlook for the Australian tender is NEUTRAL TO POSITIVE.

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