Pound to Dollar FX Forecast: Gains Predicted For GBP USD Exchange Rate on Forex Markets

September 16, 2014 - Written by John Cameron

STORY LINK Pound to Dollar FX Forecast: Gains Predicted For GBP USD Exchange Rate on Forex Markets

Currency News UK: Pound to Dollar FX Forecast - Gains are predicted for the GBP USD exchange rate on the forex markets:

A ‘risk-off’ trading environment recently has led analysts to forecast renewed gains for the Pound Sterling Australian Dollar exchange rate GBP/AUD. UK inflation data released yesterday altered economists’ forecasts and currency predictions for the Pound Sterling.

Fears over a potential slowdown in Chinese growth held back the Australian Dollar during yesterday’s trading session.

July’s Industrial Output data showed that factory production in China had increased by 8.8% compared to 12 months earlier.

The counterpart August figure, published yesterday showed that the level of Chinese Industrial Output had dropped to 8.5% last month.

Discounting the Chinese Lunar New Year holiday months of January and February, this was the lowest showing for this data release since the end of 2008 when the global economy teetered on the verge of an all-out collapse. The news ensured that Sterling’s losses against the Australian Dollar were limited as the risk-sensitive Aussie struggled to hold its own.

Elsewhere, yesterday afternoon’s numbers revealed that US Industrial Production had unexpectedly slipped by 0.1% last month. Analysts had been anticipating a showing of 0.3%, so the US Dollar (currency:USD) gave up ground against the other majors as a result. The Sterling US Dollar exchange rate climbed to as high as 1.6277 on the day following the data.

The most recent official figures from the Commodity Futures Trading Commission in Washington revealed that the number of institutional investors predicting that the Buck will strengthen in the near-term had dropped to 144,377 last week from 174,876 the week before. The figures suggest that the downward move for the GBP USD exchange rate may now have run out of steam and that if Thursday’s Scottish referendum goes the way of the ‘Better Together’ campaign, then analysts may forecast that the Pound Sterling US Dollar exchange rate is be set to move sharply higher once more.

Looking ahead, this morning’s UK Consumer Price Index data is likely to determine the fortunes of the Pound in the lead up to the Scottish independence ballot. Expectations are low for the Consumer Price Index release, with a drop to a year-on-year 1.5% the consensus expectation amongst economists. A print above this lowly number will see Sterling well-supported, with a break above the 1.2600 level likely for the Pound euro exchange rate GBP/EUR in such a circumstance.

Latest US Doillar Exchange Rates - Updated 17/09/2014

The US Dollar to Australian Dollar exchange rate is trading up +1.33% at 1.11591 USD/AUD.
The US Dollar to Canadian Dollar exchange rate is trading up +0.26% at 1.10036 USD/CAD.
The US Dollar to Swiss Franc exchange rate is trading up +0.91% at 0.94124 USD/CHF.
The US Dollar to Chinese Yuan exchange rate is trading down -0.11% at 6.13900 USD/CNY.
The US Dollar to Euro exchange rate is trading up +0.66% at 0.77683 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading up +0.08% at 0.61531 USD/GBP.
The US Dollar to Hong Kong Dollar exchange rate is trading up +0% at 7.75143 USD/HKD.
The US Dollar to Indian Rupee exchange rate is trading value +0% at 61.20500 USD/INR.
The US Dollar to New Zealand Dollar exchange rate is trading up +1.25% at 1.23613 USD/NZD.

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