Foreign Currency Exchange Rate Forecast For GBP EUR And Predictions For USD & AUD

Published: Thursday, 9 May 2013 14:00 BST - Written by John Cameron

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

The Bank of England’s monetary policy committee opted against any further loosening of the UK’s monetary policy earlier today and the POUND STERLING registered respectable gains against the majority of the other sixteen most actively traded global currencies as a consequence. With this morning’s British Industrial and Manufacturing production data beating expectations, it has been a decent day all round for the Pound. The outlook for Sterling is NEUTRAL TO POSITIVE.

The EURO has been one of the worst performing of the major currencies so far today following this morning’s publication of its monthly report by the European Central Bank. The release saw the ECB cut its whole of eurozone growth forecast for this year to -0.4%, holding back the single currency on the day. Selling pressure on the euro has sent the Pound to euro exchange rate (GBP/EUR) up to as high as 1.1855 and the single currency is expected to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The US DOLLAR has lost further ground against Sterling so far today, sending the GBP USD exchange rate up to 1.5587. The Greenback continues to leak support in the currency markets as investors factor-in the Federal Reserve’s comments of last week which suggested that its controversial $85bn per month Quantitative Easing programme is here to stay, at least until conditions in America’s labour market ameliorate. The Buck is expected to trade on a NEUTRAL TO NEGATIVE footing in the meantime.

The AUSTRALIAN DOLLAR has market outperformed so far today, causing the GBP AUD exchange rate to dip to as low as 1.5144 earlier. Yesterday’s session was a poor one for the Aussie as investors fretted that the Reserve Bank of Australia might follow its New Zealand counterpart’s lead in actively intervening in the currency markets to weaken its currency. Last night’s positive domestic unemployment data helped the AUD to gain ground on the day, but while Australia’s policymakers call for a weaker tender, the outlook for the Aussie is no more than NEUTRAL.

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