Foreign Currency Exchange Rate Predictions For GBP EUR USD AUD

Modified: Monday, 22 April 2013 13:36 BST - Written by John Cameron

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

Yesterday’s news that the UK is set to launch a legal challenge to the controversial European Financial Tax (FTT) has ensured that the POUND STERLING has remained under selling pressure today. Tomorrow morning’s UK Public Sector Net Borrowing figures are unlikely to prove positive for the Pound. Sterling is expected to trade on a NEUTRAL TO NEGATIVE footing in the short term.

This morning’s whole of eurozone Debt-to-GDP ratio data for 2012 showed an increase to 90.6%, reminding investors of the perilous fiscal position which the region as a whole is in. The EURO has given up a little ground against both the Pound and the Greenback as a consequence and the Pound euro exchange rate (currency : GBP/EUR)stands at 1.1684. The outlook for the single currency is NEUTRAL TO NEGATIVE, with this afternoon’s eurozone Consumer Confidence survey for April expected to provide the euro with renewed near-term direction.

The US DOLLAR has recorded healthy gains against Sterling during the last two sessions, sending the Pound US Dollar exchange rate (currency : GBP/USD) down to 1.5234. The Greenback has made gains thanks to investor’s upping their bets that the Federal Reserve’s controversial Quantitative Easing programme may be wound down later in the year. With global stock markets having registered strong gains since the turn of the year, and many analysts expecting a correction for equities, the Buck could be in line for more safe-haven support, making the short-term outlook for the US Dollar NEUTRAL TO POSITIVE.

The AUTRALIAN DOLLAR has lost ground against Sterling so far today, in spite of the UK economy’s manifold ongoing problems. Wednesday’s Australian CPI Inflation data provides the next key risk event of note for the Aussie. If, as expected, the price rise figures reveal a heating up of domestic inflation, then market participants may trim their bets on a near-term rate-cut from the RBA. For this reason, the Aussie is expected to trade on a NEUTRAL TO NEGATIVE footing in the lead up to this key release.

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