Foreign Currency Exchange Rate Forecasts For GBP EUR USD AUD

Published: Tuesday, 7 May 2013 16:00 BST - Written by John Cameron

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

The POUND STERLING has put in a relatively weak performance o the day, losing ground against almost all of the sixteen most-actively traded currencies with the exception of the Australian and New Zealand Dollars. The positive effect of Friday’s encouraging UK Services sector PMI survey appears to have worn off, leaving investors to fret over a possible extension to the Bank of England’s Quantitative Easing programme on Thursday. In the meantime, the outlook for Sterling is NEUTRAL TO NEGATIVE.

The EURO has clawed back a proportion of the losses which incurred against Sterling at the end of last week following ECB President Mario Draghi’s hints at a further easing of the eurozone’s monetary policy. This morning’s positive German Factory Orders figures helped the single currency on the day; if tomorrow’s German Industrial Production figures are equally as encouraging, then the euro is likely to continue to trade on a NEUTRAL TO POSITIVE footing. The current Pound to euro exchange rate (currency : GBP EUR) is 1.1840.

The US DOLLAR has struggled to break even on the day against the Pound, leaving the GBP USD exchange rate at 1.5528. Last Friday’s better than expected US Non-Farm Payroll data would have had a more beneficial effect on the Greenback were it not for the Fed’s midweek assertion that America’s labour market will need to improve ‘considerably’ before it will consider cutting back on its controversial asset purchase programme. The Buck is forecast to struggle while this remains the case, leaving the prognosis for the USD as NEUTRAL TO NEGATIVE.

The AUSTRALIAN DOLLAR has incurred pronounced losses against nearly all of the other major currencies so far today, following last night’s surprise decision by the Reserve Bank of Australia to trim its key lending rate from 3.00% to 2.75%. The downward move in interest rates to a new record low suggests that Australia’s policymakers feel that the recent commodity rally may be running out of steam. The Pound Australian Dollar exchange rate (currency : GBP AUD) stands at 1.5266 and the Aussie is expected to trade with a NEUTRAL TO NEGAIVE bias in the short term.

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