Foreign Currency Exchange Rate Prediction For GBP EUR & Forecasts For USD AUD

Published: Thursday, 11 April 2013 18:00 BST - Written by Toni Johnson

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

The POUND STERLING has enjoyed a broadly positive day on the currency markets today. Sentiment surrounding the UK currency has been relatively firm since yesterday’s NIESR GDP Growth estimate forecasted that Britain’s economy had returned to growth during the first quarter of 2013. With little in the way of UK data releases scheduled for the remainder of this week and into next week’s session, Sterling is predicted to trade on a NEUTRAL footing moving forward.

Today’s session provided a reminder of the extent of the EURO’s current problems. The single currency has struggled to strengthen against the Pound on the day, meaning that the GBP EUR exchange rate remains at 1.1740. This afternoon’s news that the estimated cost of Cyprus’s bailout has risen to €23bn, necessitating a large scale sell of its gold reserve by the debt-addled Mediterranean state has held the single currency back. The outlook for the euro is NEUTRAL TO NEGATIVE.

The US DOLLAR has given up a significant amount of ground against both the Pound and the euro so far today. Positive Initial Jobless Claims figures in the US this afternoon should have helped the Greenback, as should yesterday’s Federal Reserve FOMC Minutes which revealed that the US central bank’s steering committee is seriously considering winding down its Quantitative Easing scheme. For these reasons, the Buck is expected to trade on a NEUTRAL TO POSITIVE footing moving forward. The current GBP USD exchange rate stands at 1.5402.

The AUSTRALIAN DOLLAR has struggled to assert itself in the global currency markets so far today. Negative sentiment surrounding the Australian tender has been driven by last night’s weak domestic labour market figures and by nagging fears that the Reserve Bank of Australia is set to trim interest rates sooner rather than later. The Aussie is expected to trade with a NEUTRAL TO NEGATIVE bias in the short term and the current GBP AUD exchange rate is 1.4589.

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