Pound Australian Dollar Exchange Rate Forecast Gains, Pound to Euro & US Dollar Predicted to Fall

April 24, 2014 - Written by David Woodsmith

STORY LINK Pound Australian Dollar Exchange Rate Forecast Gains, Pound to Euro & US Dollar Predicted to Fall

Pound Sterling suffered on the day yesterday thanks to an alarming publication from the UK Office for Budgetary Responsibility. The Pound to euro (GBP/EUR) and Pound to Dollar (GBP/USD) exchange rates suffered in response. However, the Pound Australian Dollar exchange rate (GBP/AUD) surged on tame Aussie inflation data.

Today's key Pound Sterling exchange rates (Updated 15:00 24/04/2014):
- Pound to Australian Dollar exchange rate is trading up +0.37% at 1.81366 GBP/AUD.
- Pound Sterling to Euro exchange rate is trading up +0.08% at 1.21561 GBP/EUR.
- Pound Sterling to US Dollar exchange rate is trading up +0.08% at 1.67961 GBP/USD.

The Pound to Euro & Pound to Dollar exchange rates slump...

Do you want the good news or the bad news? OK – good news first – the UK government’s level of borrowing in the financial year which ended earlier this month was lower than in the previous year, hitting a self-imposed target. The bad news, however, is that the amount which the UK PLC borrowed totalled a staggering £107.7bn. The startling figure, published by the UK’s Office for Budgetary Responsibility yesterday morning, caused the Pound Sterling to post an anaemic performance against the other majors on the day. The Pound euro exchange rate peeled back from Tuesday’s high of close to 1.2200 GBP/EUR to trade down into the low 1.2100s, while the Pound US Dollar exchange rate also slumped to 1.6758 GBP/USD.

The Pound to Australian Dollar exchange rate improves on Aussie inflation data...

One currency which the Pound fared well against on the day was the Australian Dollar. The Aussie suffered a sharp bout of selling pressure following the publication of lower than expected Aussie inflation data during Wednesday’s Asian session. Analysts had been anticipating a Q1 Consumer Prices Index print of 3.2%, so the showing of 2.9% caused investors to scramble to push back their expectations regarding the timing of the next interest rate hike from the Reserve Bank of Australia. The development saw the Pound Australian Dollar exchange rate spike to as high as 1.8143 GBP/AUD during early trading and further upside is forecast for the pair moving forward.

Highlights for today include US Durable Goods Orders data and Initial Jobless Claims figures, both set for publication at 1330hrs BST. Expect a strong showing in relative terms from either or both of the releases to send the Pound Dollar exchange rate (GBP/USD) lower once more.

For further exchange rate forecasts or to compare exchange rates for a money transfer overseas, please refer to the main Currency News UK website.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Australian Dollar Forecasts Daily Currency Updates Dollar Forecasts