Exchange Rate Forecasts for the British Pound, Euro, Australian Dollar and Yen

December 9, 2014 - Written by John Cameron

STORY LINK Exchange Rate Forecasts for the British Pound, Euro, Australian Dollar and Yen

Currency News Exchange Rate Predictions for the Pound Sterling (currency:GBP), Euro (currency:EUR), Aus Dollar (currency:AUD) and the Japanese Yen (currency:JPY)

Sterling Steady Ahead of GDP Forecast

The POUND STERLING (currency:GBP) enjoyed gains against most of the other sixteen most actively traded global currencies yesterday.

An improved showing from the Lloyds Employment Confidence survey, out first thing, helped support Sterling, but the main event this week is still to come for the UK unit.

This afternoon’s NIESR UK Gross Domestic Product estimate is always closely-monitored because it uses the UK Treasury’s modelling software to generate the prediction.

An improvement from last month’s 0.7% result would see sentiment towards the Pound improve.

In the meantime, Sterling is forecast to trade with a NEUTRAL TO POSITIVE bias.

The Pound to Australian Dollar exchange rate converts +0.04 per cent higher at 1 GBP is 1.88656 AUD.
The Pound to Canadian Dollar exchange rate today is converting -0.19 per cent lower at 1.79356 GBP/CAD.
The Pound to Euro conversion rate is -0.42 pct lower at 1.26548 GBP/EUR.
The Pound to New Zealand Dollar conversion rate is -0.3 pct lower at 2.03889 GBP/NZD.
The Pound to US Dollar exchange rate is +0.05 pct higher with a conversion rate of 1 GBP equals 1.56578 USD.

Euro Exchange Rate Forecast: Policymaker Comments Weigh on EUR

The EURO (currency:EUR) once again floundered against the other major currencies yesterday following an unhelpful set of comments from a leading European Central Bank (ECB) policymaker.

Ewald Nowotny, the President of the Austria’s central bank and a member of the ECB’s policy board warned that the euroland economy is weakening ‘massively’.

He went on to suggest that a bout of all-out Quantitative Easing could be ‘valuable’ for the region. Whilst the spectre of QE hangs over the single currency, it is likely to remain firmly in the ‘at risk’ category.

The forecast for the euro remains NEGATIVE and the current GBP EUR exchange arte stands at 1.2705.

Australian Dollar Exchange Rate Forecast: China Data Hurts Aussie

Support for the AUSTRALIAN DOLLAR (currency:AUD) slumped during early trading yesterday. The move was triggered by yet more disappointing economic data from the Antipodean nation’s number one export destination – China.

Particularly worrying were last month’s Chinese import stats which showed at a woeful -6.7% versus an expected positive print of 4.0%.

Given the continued slump in global commodity prices, the outlook for the Aussie is now NEUTRAL TO NEGATIVE. The GBP AUD exchange rate stands at 1.8820.

Yen Rate Forecast: JPY Flounders on QE Expectation

The value of the JAPANESE YEN (currency:JPY) slumped during yesterday’s Asian session following the revelation that Japan’s economy shrank by a far greater amount than was previously estimated during the third quarter of this year.

The contraction by a year-on-year 1.9% came as a shock to analysts who had been expecting a showing of around -0.5%.

A deepening of Premier Shinzo Abe’s already massive Quantitative Easing programme now looks highly likely. The Yen has rarely appeared so endangered; the outlook for the Japanese unit is NEGATIVE and GBP JPY sits at 188.60.

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TAGS: Australian Dollar Forecasts Currency Predictions Euro Forecasts Eur Forecasts