Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), Australian Dollar (AUD) & Dollar (USD)

April 22, 2014 - Written by Frank Davies

STORY LINK Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), Australian Dollar (AUD) & Dollar (USD)

The POUND STERLING (currency:GBP) has traded within a tight range against the other major currencies so far today as market participants sit on their hands ahead of the publication of the minutes of the latest Bank of England meeting first thing tomorrow. An accompanying forward guidance statement will be required in order to alter the relative value of the Pound. In the meantime, market participants are likely to concentrate on last week’s encouraging UK employment data, meaning that the outlook for Sterling is NEUTRAL TO POSITIVE.

The Pound has pushed ahead against the EURO (currency:EUR) during today’s session, sending the GBP EUR exchange rate up to 1.2189 earlier. This morning’s whole of eurozone construction output data for February showed a marked-drop-off from the week before, while this afternoon’s whole of eurozone Consumer Confidence survey, although better than anticipated, still printed at well below zero. The consensus amongst analysts is that the single currency will trade on a NEUTRAL TO NEGATIVE footing moving forward.

The AUSTRALIAN DOLLAR (currency:AUD) has held steady against Sterling so far today, allowing the GBP AUD exchange rate to dip to as low as 1.7928 during early trading. Investors appear to have placed concerns regarding the state of the Japanese economy, triggered by yesterday’s dismal domestic trade figures, to the back of their minds and are instead concentrating on a likely interest rate increase from the Reserve Bank of Australia, which may be close at hand. The Aussie is now expected to trade with a NEUTRAL TO NEGATIVE bias ahead of tonight’s Australian inflation figures.

The US DOLLAR (currency:USD) has once again started this week’s session on the back foot, sending the Pound Dollar exchange rate up to 1.6840 GBP USD. However, this afternoon’s US House Price Index and Existing Home Sales numbers were markedly better than had been anticipated, suggesting that there is some hope for the Buck in the short-to-medium term. The fact that GBP USD continues to trade at levels perilously close to a 4 ½ year high means that technical pressure on the pair is to the downside. The outlook for the Greenback is now NEUTRAL.

For further information on exchange rate forecasts/ predictions or to compare exchange rates for an international money transfer, please refer to the main Currency News UK website.

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