Pound Sterling to Australian Dollar Forecast: GBP/AUD Exchange Rate Losses Predicted in 2015

January 11, 2015 - Written by John Cameron

STORY LINK Pound Sterling to Australian Dollar Forecast: GBP/AUD Exchange Rate Losses Predicted in 2015

Currewncy News UK Presents Our Pound to Aus Dollar (GBP/AUD) Exchange Rate Forecast: Investors Remain Nervous

Anxiety continued to occupy the minds of global investors on Friday afternoon, in spite of a strongest than anticipated set of US jobs numbers.

On the face of it, the keynote labour market numbers from the States were positive, revealing that some 252,000 new positions had been generated in the combined non-agricultural sectors of the American economy last month.

However, investors were not so sure and the VIX ‘Fear Index’ has edged higher as the weekend market shutdown has approached.

US Dollar Exchange Rate Softens on Jobs Data

The positive tone of the US numbers was augmented by the overall unemployment data which revealed that the total level of joblessness had unexpectedly fallen to 5.6% last month.

The strong monthly jobs data would have pushed the Greenback higher across the board as recently as a couple of years ago when the US Federal Reserve used the employment figures as a key driver for policy formation.

However, times have changed since then and the Fed now uses a raft of indicators in order to formulate its policy.

The US Dollar (currency:USD) has given up ground against the Pound Sterling in the aftermath of today’s American data, suggesting that market participants are more focussed on the expansion in real wages, (or the lack of it) in the US economy, and with the rapidly falling pace of inflation that they are the employment situation.

AUD and NZD Exchange Rates Gain

However, the Commodity Dollars responded positively to developments in the States, with the Pound Sterling falling against both the Australian (AUD) and the New Zealand Dollars (NZD).

The risk-driven units responded well to the combination of the go-ahead US jobs numbers and continued expectations that the US Federal Reserve will maintain its ‘easy money’ attitude towards interest rates.

Analysts forecast that there could be further losses to come for GBP/AUD and GBP/NZD in the light of today’s figures.

Canadian Dollar Exchange Rate Outlook: CAD Falls

Elsewhere, the pound Sterling has pushed ahead against the Canadian Dollar (currency:CAD) since the North American opening bell.

Although this afternoon’s US jobs numbers were a positive for the Loonie, the Canadian jobs numbers, published at the same time, were a distinct disappointment, revealing a Net Change in Employment figure of -4,300.

Commentators now consider a break back up above the 1.8000 threshold a live possibility for early next week.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts