Exchange Rate Forecasts - Euro to Pound (EUR/GBP), US Dollar (USD) & Australian Dollar (AUD)

June 23, 2014 - Written by John Cameron

STORY LINK Exchange Rate Forecasts - Euro to Pound (EUR/GBP), US Dollar (USD) & Australian Dollar (AUD)

Pound Sterling forecast The POUND STERLING (GBP) has put in a flat performance in the markets during today’s session, trading on the level against most of the other sixteen most actively traded currencies with the exception of the Southern Hemisphere high yielders.

The news that the latest survey from the Bank of England shows that UK mortgage lenders expect the number of mortgage offers sent out to dip during coming months means that the outlook for GBP EUR is NEUTRAL.

Euro exchange rates forecast

The EURO (EUR) has once again held its own against both the Pound Sterling (GBP) and the US Dollar (USD) during today’s session.

This morning’s mildly disappointing PMI surveys from both the eurozone and Germany have not held back the single currency and it now looks likely that the European Central Bank’s policy loosening measures which it announced earlier this month have been almost fully factored-in to pricing for the EUR.

The next risk event of note for the single currency is tomorrow’s German IFO business sentiment survey and the euro forecast is to trade on a NEUTRAL TO NEGATIVE footing in the near term. Pound Euro exchange rate stands at 1.2515 GBP/EUR currently.

US Dollar exchange rate forecast

The US DOLLAR continues to trade on the back foot meaning that the GBP USD exchange rate has spent virtually the whole of today’s session changing hands at above the 1.7000 threshold.

This afternoon’s encouraging US Existing Home Sales figures for last month could help the Buck claw back some of its recent losses against the Pound, however tomorrow afternoon’s US Consumer Confidence survey will need to beat expectations to provide GBP USD with any real downward momentum.

The Greenback is forecast to trade on a NEUTRAL footing in the short term and Pound Dollar exchange rate stands at 1.7014 GBP/USD.

Australian Dollar rate forecast

The AUTRALIAN DOLLAR has market outperformed so far today, sending the Pound to Australian Dollar exchange rate down to as low as 1.8012 GBP/AUD earlier on.

Last night’s stronger than anticipated Chinese Manufacturing PMI survey has fuelled the Aussie’s improvement; look for any further suggestion from the Reserve Bank of Australia that domestic interest rate increases are on their way to trigger further support for the Aussie, which is now predicted to trade with a NEUTRAL TO POSITIVE bias moving forward.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts