Pound to Euro & Aus Dollar Predictions - Exchange Rate Gains for GBP/EUR, GBP AUD Forecast Lower

October 7, 2014 - Written by John Cameron

STORY LINK Pound to Euro & Aus Dollar Predictions - Exchange Rate Gains for GBP/EUR, GBP AUD Forecast Lower

Currency News UK brings you the latest Pound to Euro and Australian Dollar exchange rate news today and latest forecasts / predictions for the GBP EUR and AUD.

The apparent spread of the deadly Ebola virus and figures pointing to a slump in German industrial output have informed price action in the global currency markets today.

Last night’s news that a Spanish nurse had been the first individual to contract Ebola outside West Africa has sent global investors diving for safety on the day today.

The worker at Carlos III Hospital in the nation’s capital, Madrid, contracted the lethal virus after treating two missionary workers who had recently visited the Western part of Africa.

Concerns at the lack of a coherent plan from the world’s developed nations to contain the spread of the killer disease have caused global share markets to shed support on the day; London’s FTSE 100 was down by the best part of a percentage point by the middle part of the trading day, whilst Europe’s bourses also came under pressure.

Perhaps unsurprisingly, Madrid’s headline IBEX index fared the worst, dropping by almost 2.0%.

Meanwhile, the VIX ‘Fear Index’ has also moved Northwards on the day, hinting at a pronounced flight to safety in the markets.

Pound to Aus Dollar Exchange Rate Today

Given this trading landscape, one might have expected the Pound Sterling to have registered decent gains against the high yielding currencies, but this has not proved to be the case.

The UK unit has dropped by 0.34% against the Australian Dollar (currency:AUD), while the Pound New Zealand Dollar has edged lower to touch 2.0473 earlier on.

The Pound’s losses against the Australian tender have been driven by last night’s commentary from the Reserve Bank of Australia, (RBA).

The Aussie central bank announced last night that it will be keeping its key lending rate on hold at 2.50%, as per the consensus expectation amongst analysts; however the accompanying commentary pushed the Aussie higher against the Pound.

It was as much what the RBA didn’t say as what it did say which pushed forward the Aussie - a pointed failure from the Bank’s Governor Glenn Stevens to suggest any further loosening of domestic monetary policy in the near-term proved supportive to the Australian unit.

Analysts forecast that there could be further losses to come for the GBP AUD exchange rate.

Pound Euro Exchange Rate Outlook and Forecast

Meanwhile, this morning’s monthly German Industrial Production data showed its biggest drop since the first half of 2009.

The release added to the mood of gloom in the markets and ensured that the Pound Sterling euro exchange rate edged upwards to 1.2756 GBP EUR on the day.

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TAGS: Australian Dollar Forecasts Currency Predictions Euro Forecasts Eur Forecasts