Foreign Currency Exchange Rate Forecasts For GBP EUR USD AUD

Modified: Thursday, 28 March 2013 13:06 BST - Written by Tim Boyer

STORY LINK Foreign Currency Exchange Rate Forecasts For GBP EUR USD AUD

The EURO started today’s session firmly under the cosh, as investors fretted about possible tensions in Cyprus when the debt-addled nation’s banks re-opened for business this morning. The wide scale trouble which had been anticipated failed to materialise, giving the single currency some breathing space. However, the euro remains under pressure thanks to weak German retail sales and unemployment data, released this morning. The outlook for the single currency is NEUTRAL TO POSITIVE and the current GBP EUR exchange rate is 1.1805.

The POUND STERLING has performed relatively tamely so far today. A weaker-than-expected Nationwide House Price survey has ensured that Sterling remains under pressure, while concerns regarding the UK’s fiscal position fail to go away. With the threat of further credit downgrades for the UK economy in the near future, the Pound trades on a NEUTRAL TO NEGATIVE footing in the near-term.

The US DOLLAR has had a steady day so far today in the global currency markets. However, the generally improved global appetite for risk which has followed the relatively trouble-free re-opening of Cyprus’s banks threatens to cause a weakening of the Greenback as the day progresses. This afternoon’s marginally weaker-than-expected US Q4 GDP data has added to sentiment against the ‘Buck’, sending the GBP USD exchange rate back up to 1.5140. The outlook for the US Dollar is NEUTRAL TO NEGATIVE.

The AUSTRALIAN DOLLAR has been the worst-performing of the sixteen most-actively traded global currencies so far today. Having broken to its highest level for many years against most of the major currencies in the first part of this month, the ‘Aussie’ was ripe for some technical down-selling. This, in combination with this week’s eurozone debt flare-up, which has served to take the edge off investors’ appetite for risk, has caused a move out of AUD-denominated assets. Therefore, the ‘Aussie’ is expected to trade on a NEUTRAL footing moving forward. The current GBP AUD exchange rate stands at 1.4540.

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