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Exchange Rate Forecasts & Predictions For Pound Sterling (GBP) Euro (EUR) Dollar (USD) Australian Dollar (AUD)

April 9, 2014 - Written by John Cameron

The POUND STERLING (currency:GBP) put in a strong performance during yesterday’s session, however it has been less convincing today. Although this morning’s UK Trade Balance data for February was less bad than anticipated, it still pointed to massive monthly trade gap of £9.1bn – hardy cause for celebration. Tomorrow afternoon’s Bank of England policy decision is likely to be a damp squib, so it is predicted that the Pound will continue to trade with a NEUTRAL TO POSITIVE bias moving forward.

Support for the EURO (currency:EUR) has firmed somewhat during today’s session, sending the Pound euro exchange rate back down to 1.2122 GBP/EUR earlier. The renewed support for the single currency looks to be technical in nature rather than driven by fundamentals given that this morning’s German Trade Balance data showed at a below par level. Tomorrow morning’s Monthly Report from the European Central Bank has the potential to be market moving, in the meantime the single currency is expected to trade on a NEUTRAL footing.

The US DOLLAR (currency:USD) leaked support in the markets yesterday, but the Greenback has traded sideways against the other majors so far today. It appears likely that institutional investors are sitting on their hands ahead of the publication of the minutes of the Federal Reserve’s most recent policy meeting later tonight. Any suggestion from the US central bank that it is considering deviating from its current path of cutting QE by $10bn per month will once again shift support for the Buck. In the meantime, analysts forecast that the US Dollar will trade on a NEUTRAL keel. The current Pound Dollar exchange rate stands at 1.6740 GBP/USD.

The AUSTRALIAN DOLLAR (currency:AUD) has once again pushed ahead against Sterling during today’s session, sending the GBP/AUD exchange rate down to as low as 1.7829 earlier on. The Aussie has benefitted from the overnight release of stronger than expected February Home Loans data which has impacted upon investors’ thoughts regarding the timing of the next interest hike from the Reserve Bank of Australia. If the situation remains relatively calm in the Ukraine, then expect the Australian unit to trade on a POSITIVE footing in the near-term.

To compare exchange rates, see currency converters/charts/history or get the best foreign exchange rate for an international money transfer, please refer to the main Currency News UK website.

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