Pound to Euro Rate and Australian Dollar Rate Outlook - Analysts Forecast Gains For GBP AUD & GBP EUR Exchange Rates

September 11, 2014 - Written by John Cameron

STORY LINK Pound to Euro Rate and Australian Dollar Rate Outlook - Analysts Forecast Gains For GBP AUD & GBP EUR Exchange Rates

Analysts forecast that the Pound euro exchange rate GBP/EUR and the Pound Australian Dollar GBP/AUD exchange rate may be about to head higher following the latest poll on Scottish independence. Local data in Australia has not been enough to support the Australian Dollar (currency:AUD).

Very strong Australian unemployment data, published overnight, hasn’t stopped the Sterling Australian Dollar exchange rate climbing to as high as 1.7845 GBP AUD during today’s trading. The Australian unit has suffered from a generalised risk-off trading environment which has seen the FTSE 100 index in London shed 0.59% of its value. Meanwhile, the headline Dow Jones index in the US was trading down by 0.22% by the middle part of the North American trading day. Shares have had a good run over the past month, with most equities markets rising sharply from their near-term low which was generally reached on 8th August. Perhaps a correction was due and the slight easing of risk appetite this week’s suggests that this is the case.

The flight to safety in global markets looks to have been driven by concerns that the European Union’s new deeper sanctions against Moscow are likely to cause a dampening of risk appetite in the global markets. If this move continues, then expect the Australian Dollar to record further losses against the Pound.

Next week’s Scottish referendum continues to alter the relative value of the Pound, with the latest Survation opinion poll, published in this morning’s Daily Record newspaper, suggesting that the ‘No’ campaign now enjoys a 48 – 42 lead over the ‘Better Together’ campaign. With 10% of respondents stating that they still do not know which way they will vote, the result of next Thursday’s ballot remains up in the air, however, Sunday’s YouGov poll showing a narrow advantage for the ‘Yes’ campaign is increasingly looking like an ‘outlier’ result.

Elsewhere, the Pound euro exchange rate climbed to 1.2579 earlier on as investors priced-in the Survation poll result. This morning’s German Consumer Price Index inflation data, which showed that price rises in the eurozone’s premier economy had remained at an annualised 0.8% last month. The single currency badly needed a higher showing to attract further support.

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TAGS: Australian Dollar Forecasts Currency Predictions Euro Forecasts Eur Forecasts