Euro (EUR), Pound (GBP), Dollar (USD) & Australian Dollar (AUD) Foreign Currency Exchange Rate Predictions & Forecasts

Currency News UK: Euro (EUR), Pound Sterling (GBP), Dollar (USD) & Australian Dollar (AUD) Foreign Currency Exchange Rate Predictions & Forecasts - The impression grows that all of the good news from the UK economy has now been factored-in to pricing on the POUND STERLING (currency:GBP).

Yesterday’s news that speculators had cut their net long positions on the British tender by 28,915 contracts since the first week of July may hold back the Pound during coming sessions.

John Hardy of Saxo Bank concurs, stating yesterday that, ‘at this level, Sterling will need constant new inputs to justify its price. We may have seen the top in the Pound-Dollar exchange rate. The outlook for Sterling is now NEUTRAL.

Yesterday morning’s whole of eurozone Consumer Confidence survey provided a chink of light at the end of the tunnel for investors holding the EURO (currency:EUR).

The stronger than anticipated showing from the latest regional gauge of sentiment suggested that the European Central Bank’s drastic policy loosening measures have reassured economic participants in the eurozone.

This morning’s German unemployment data is the next data release of note for the single currency, which is expected to trade with a NEUTRAL TO POSITIVE bias moving forward. The GBP EUR exchange rate stands at 1.2631.

The US DOLLAR (currency:USD) received a kick in the teeth yesterday evening when the latest Federal Reserve policy statement warned that, ‘even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.’

The US central bank’s apparent discounting of recent positive American jobs market and GDP growth data means that the Buck is now forecast to trade on with a NEUTRAL bias moving forward. The GBP USD exchange rate currently stands at 1.6904.

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Support for the AUSTRALIAN DOLLAR (currency:AUD) slumped in the markets yesterday following the publication of a highly positive set of US Gross Domestic Product figures.

Investors took the numbers as an indicator that the world’s leading central bank – the US Federal Reserve – is likely to tighten its monetary policy sooner rather than later.

The negative effect which this had on risk-driven currencies including the Aussie was pronounced. Any escalation of geo-political tensions in Ukraine or Gaza would be likely to have the same effect on the Australian tender. Analysts now forecast that the outlook for the Australian Dollar is NEUTRAL TO NEGATIVE and GBP AUD stands at 1.8144.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts

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