Pound, Euro, US Dollar & Australian Dollar Forecasts - Latest GBP EUR USD & AUD Exchange Rate Predictions 2014

September 15, 2014 - Written by John Cameron

STORY LINK Pound, Euro, US Dollar & Australian Dollar Forecasts - Latest GBP EUR USD & AUD Exchange Rate Predictions 2014

Currency exchange analysts forecast that major risk events will continue to alter levels on the major global exchange rates including Pound Sterling (GBP), Euro (EUR), US Dollar (USD) and Australian Dollar (AUD) conversions.

The POUND STERLING (currency:GBP) staged a mini recovery against the other sixteen most-actively traded global currencies this morning following the publication of another raft of opinion polls which suggested that ‘No’ voters will outnumber the pro-Independence lobby in Thursday’s Scottish referendum.

However, this afternoon’s session has seen Sterling give up its tentative gains as investors factor-in the likelihood that tomorrow morning’s domestic Consumer Price Inflation data will point to a renewed slow down in the rate of British price rises.

Analysts forecast that the Pound will perform on a NEUTRAL footing moving forward.

The EURO (currency:EUR) has pushed ahead versus Sterling during afternoon trading today.

This morning’s whole of eurozone trade balance figures pointed to a €21.2bn surplus of exports over imports in July, providing the single currency with a fair wind.

Tomorrow morning’s German ZEW confidence index has the potential to be market-moving, with an improvement on last month’s showing of 8.6 required to cause the euro to move higher again.

The prospects for the single currency remain NEGATIVE and the GBP EUR exchange rate stands at 1.2539.

The US DOLLAR (currency:USD) has gained around 0.20% against Sterling today.

A weaker than anticipated set of monthly Manufacturing and Industrial Production numbers have curbed the Buck’s gains against the other major currencies.

However, the defining event in the near-term for the Greenback comes on Wednesday evening with the latest policy announcement from the US Federal Reserve.

Market rumours suggest that the Fed may suggest that an interest rate hike is now close at hand,

so the outlook for the Dollar is NEUTRAL TO POSITIVE. GBP USD stands at 1.6242.

The AUSTRALIAN DOLLAR (currency:AUD) initially lost ground against Sterling during today’s session, before recovering to finish level on the day against the Pound.

The Aussie’s improvement against the UK tender was stunted by a generalised ‘risk-off’ trading environment since the New York open. A continued forward move in the VIX ‘Fear Index’ suggests that the flight to safety might have some legs – bad news for Aussie-holders.

For this reason, the Australian unit is expected to trade with a NEUTRAL bias moving forward. The GBP AUD exchange rate stands at 1.7990.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts