Foreign Currency Exchange Rate Forecast For GBP EUR And Outlook For AUD USD

Published: Thursday, 23 May 2013 14:00 BST - Written by John Cameron

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

The POUND STERLING started the day off on a firm footing, but has subsequently leaked support. This morning’s revised UK GDP data for Q1 confirmed the Office of National Statistic’s initial growth estimates for the first three months of this year were accurate. This left investors to concentrate on this week’s Sterling-negative UK inflation and retail sales numbers. The outlook for the Pound is NEUTRAL TO NEGATIVE.

The EURO has had a middling day so far today following a weak set of German Manufacturing and Services sector data. The news that Spain’s debt-saddled administration managed to shift a larger than anticipated allocation of government bonds this morning offset the bad news from Germany. The current GBP EUR exchange rate is 1.1703 and the single currency is expected to trade with a NEUTRAL TO NEGATIVE bias in the near-term.

The AUSTRALIAN DOLLAR has endured wild swings over the past 24hrs – last night’s Federal Reserve FOMC minutes revealed that the US central bank’s policymakers were considering a tapering down of their nation’s controversial Quantitative Easing programme as soon as next month. The news sent Asian equities participants ducking for cover, causing Tokyo’s Nikkei 225 to lose over 7% of its value on the session. This took the Aussie sharply lower in early trading today, but as investors’ nerves have settled in the middle part of the day, the Aussie has firmed. The AUD is expected to trade on a NEUTRAL footing moving forward and the current GBP AUD exchange rate is 1.5522.

The US DOLLAR has lost ground against Sterling today, sending the Pound to US Dollar exchange rate up as high as 1.5094 earlier. The Greenback appears to be suffering thanks to yesterday’s testimony to Congress from Ben Bernanke, which saw the Fed Chairman suggest that the American economy remains too fragile to countenance a tapering of Quantitative Easing. The forecast for the Buck is for NEUTRAL trading in the short term.

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