Exchange Rate Forecast For GBP EUR & Currency Predictions For USD And AUD For Today

Published: Monday, 25 February 2013 15:00 BST - Written by Frank Davies

STORY LINK Exchange Rate Forecast For GBP EUR & Currency Predictions For USD And AUD For Today

The UK suffered its first credit downgrade since the dark days of the 1970s late on Friday and the POUND STERLING has lacked support on the day as a consequence. Sterling has sustained particularly heavy losses against the other European currencies, suggesting that institutional investors are shifting their funds en masse out of the UK tender. The outlook for the Pound is NEGATIVE ahead of Wednesday’s latest British Q4 GDP figures.

The EURO has been strongly supported in the currency markets today, sending the GBP EUR exchange rate tumbling to a new 16-month low of 1.1344 earlier. The main factor in favour of the single currency today is that it is not the Pound Sterling; the eurozone’s premier economy – Germany – retains its AAA credit rating, (unlike the UK). However, exit polls from Italy’s weekend general election suggest that the centre-left may have gained enough support to form an anti-austerity coalition. This could see the single currency leek support, meaning the outlook for the euro is NEUTRAL.

The US DOLLAR has gained ground against the Pound on the day, sending the GBP USD exchange rate down to a fresh 31-month low of 1.5072 this morning. Last night’s Chinese HSBC Flash PMI Manufacturing survey for February came in well below expectations, triggering some safe haven support for the ‘Buck’. However, a strong performance for global shares today puts the Dollar’s forward move at risk. The outlook for the Greenback is NEUTRAL TO POSITIVE.

The AUSTRALIAN DOLLAR has strengthened to within a fraction of a cent of its lowest level for 28 years against the Pound today, touching 1.4625 earlier. The ‘Aussie’ has benefitted from news from Japan overnight that long-standing dove Haruhiko Kuroda is likely to be nominated as the next Governor of the Bank of Japan. This makes it probable that the BoJ will pursue an ultra-loose monetary policy, boosting demand for Australian exports. The ‘Aussie’ is expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

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