Exchange Rates Movement Forecast For Euro, Pound, Australian & US Dollar On ECB Announcement

October 2, 2014 - Written by John Cameron

STORY LINK Exchange Rates Movement Forecast For Euro, Pound, Australian & US Dollar On ECB Announcement

Today promises to be a big session in the global currency markets with the latest European Central Bank Policy announcement. Analysts forecast that this will affect the relative value of not only the euro (currency:EUR), but also the US Dollar (currency:USD) and the Australian Dollar (currency:AUD). Our top forecaster predicts haw they will fare against the Pound Sterling (currency:GBP) below.

The POUND STERLING (currency:GBP) has weathered the early-week shock of the UK’s credit downgrade well. Even yesterday morning’s disappointing survey of the domestic manufacturing sector failed to knock Sterling of its kilter. Expect this morning’s PMI survey of the British construction sector to afford the UK unit further near-term direction. The consensus amongst analyst is that the Pound will perform on a NEUTRAL TO POSITIVE footing moving forward.

The EURO (currency:EUR) has endured a horrible run in the markets, shipping support against each of the other sixteen most actively traded global currencies since the turn of the year. The outlook for the single currency remains poor and things could be about to get a whole lot worse; if this afternoon’s ECB policy announcement brings news of all-out Quantitative Easing for the euroland, then look for the euro to leak further support. Analysts predict that the euro will perform on a NEGATIVE footing and GBP EUR stands at 1.2845.

The US DOLLAR (currency:USD) endured a significant blow yesterday when September’s ISM manufacturing data showed a pronounced slump from its August counterpart figure. The Buck lost ground in the aftermath of the release, however the selling pressure which it endured would have been more pronounced were it not for an encouraging set of USD private sector jobs numbers, published a few hours earlier. The main event this week is still to come for the Greenback with the latest American jobs numbers; in the meantime, expect the Buck to trade with a NEUTRAL TO POSITIVE bias. The GBP USD exchange rate stands at 1.6188.

The AUSTRALIAN DOLLAR (currency:AUD) improved a little against the Pound during late trading yesterday, sending the GBP AUD exchange rate down to 1.8535. A marginally better than anticipated set of Chinese manufacturing figures overnight helped the Aussie to improve, but the sizeable losses for global shares yesterday provide an ongoing threat. Look for any announcement of a further easing of monetary policy from the European Central Bank to improve matters for the Australian tender; in the meantime, expect the AUD to trade on a NEUTRAL footing. The GBP AUD exchange rate sits at 1.8558.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts