Foreign Currency Exchange Rate Predictions for EUR GBP USD & AUD

Published: Tuesday, 28 May 2013 14:00 BST - Written by John Cameron

STORY LINK Foreign Currency Exchange Rate Predictions for EUR GBP USD & AUD

This morning’s German import figures have held back the EURO so far today. The inward shipment numbers suggested that demand in the eurozone’s leading economy is cooling, sending out warning signals for investors holding the single currency. Tomorrow morning’s German unemployment data could be market moving and the euro is expected to trade on a NEUTRAL footing in the lead-up to this release. Meanwhile, the GBP EUR exchange rate sits at 1.1683.

The POUND STERLING has held its own against most of the other sixteen most-actively traded global currencies with the exception of the commodity Dollars so far today. In truth, Sterling’s reasonable performance has been achieved by default – with no major UK risk events so far this week, there has been nothing to trigger selling pressure on the Pound. A light schedule of British data releases for the remainder of the week could mean that the drift continues for the Pound, which is expected to trade with a NEUTRAL bias in the near-term.

The US DOLLAR has had a relatively volatile day so far, as investors adjust their positions according to their presumptions on the future direction of the Federal Reserve’s monetary policy. This afternoon’s US Consumer Confidence survey is likely to provoke further movement, with the Greenback benefitting from a strong showing thanks to a perceived higher likelihood of a scaling down of QE from the US Central Bank which this would precipitate. However, near-term support for the Buck may be dampened by a strong performance from global share markets/ the outlook for the Dollar is NEUTRAL TO POSITIVE and the GBP USD exchange rate stands at 1.5126.

The AUSTRALIAN DOLLAR has outperformed all of the other sixteen most actively traded global currencies so far today, sending the Pound to Aussie exchange rate down to 1.5608. The Australian tender has been buoyed by a positive performance from global share markets which has favoured the risk-sensitive currencies. However, the outlook for the Aussie is far from rosy thanks to the overriding likelihood that the Reserve Bank of Australia will cut its key lending rate from its current record low of 2.75% before the end of the year. The AUD is expected to trade on a NEUTRAL TO NEGATIVE footing in the short term and the current GBP AUD exchange rate sits at 1.5610.

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