Exchange Rate Forecast For GBP EUR And Foreign Currency Predictions For CHF, AUD

Modified: Thursday, 14 March 2013 13:23 BST - Written by Minesh Chaudhari

STORY LINK Exchange Rate Forecast For GBP EUR And Foreign Currency Predictions For CHF, AUD

With no major UK data releases penned in for the remainder of the week, investors may well pick another target to downsell, following the POUND STERLING’s recent tame performance in the markets. Next week more than makes up for the blank data schedule at the end of this week, and Sterling is expected to trade on a NEUTRAL TO NEGATIVE footing ahead of next Wednesday’ key budgetary statement by UK Chancellor George Osborne.

This morning’s successful Spanish bond auction saw the rate of interest which the struggling Iberian state pays on its gilts fall, but the EURO has still given up ground against Sterling on the day, sending the GBP EUR exchange rate up as high as 1.1560. The European Central Bank’s assertion earlier today that economic activity in the eurozone will pick up in the middle part of this year also failed to convince investors who continue to fret about Italy’s political situation and the sovereign debts of the region’s peripheral nations. The near-term outlook for the single currency remains NEUTRAL.

The AUSTRALIAN DOLLAR has picked up significant support on the day, sending the GBP AUD exchange rate down to within a new multi-decade low at 1.4398 earlier. The improvement for the ‘Aussie’ was largely driven by last night’s Australian employment data, which showed that the largest number of new jobs had been added to the Antipodean nation’s economy for 13 years last month. The Australian Dollar juggernaut rolls on and it is anticipated that the AUD will trade on a POSITIVE bias moving forward.

The SWISS FRANC has lost ground today in the aftermath of the Swiss National Bank’s announcement that it is willing to further loosen Switzerland’s monetary policy in an attempt to weaken the Franc. Domestic interest rates remain at 0.0%, but the possibility remains that the SNB will cut them to below zero – a move which it has tried previously. The current GBP CHF exchange rate stands at 1.4260 and the Swiss tender is expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term.

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TAGS: Australian Dollar Forecasts Currency Predictions Euro Forecasts Eur Forecasts