Exchange Rate Forecasts for Pound Sterling, Euro, Australian Dollar & US Dollar

January 29, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecasts for Pound Sterling, Euro, Australian Dollar & US Dollar

Currency Predictions for the British Pound, Euro, US and Aus Dollars

The POUND STERLING (currency:GBP) has traded sideways against the other major global tenders so far this week.

The next significant risk event for the UK tender comes on Friday with the publication of December’s Mortgage Approval numbers.

Recent evidence suggests that the rapid forward movement in the British property market is running out of steam, so the numbers are by no means guaranteed to be positive.

For this reason, the Pound Sterling forecast is now NEUTRAL.

Euro Exchange Rate Forecast Negative

The EURO (currency:EUR) continues to be anchored by the European Central Bank’s large-scale Quantitative Easing programme, which it announced last week, and by fears that Greece might be about to instigate a breakup of the eurozone. Yesterday’s German consumer confidence survey provided some grounds for optimism, but analysts still forecast that the single currency will trade with a NEGATIVE bias moving forward.

The Pound to Euro exchange rate stands at -0.18 pct lower at 1.33935.

Australian Dollar Exchange Rate Steady Despite Inflation Data

The AUSTRALIAN DOLLAR (currency:AUD) initially recorded gains against the Pound in the immediate aftermath of a lower than anticipated set of Q4 Australian inflation figures, published during Wednesday’s Asian session.

This price action suggests that investors are focussing on the positive effect which the data will have on the domestic cost of living, rather than the increased likelihood which it brings that the Reserve Bank of Australia will trim its interest rate.

With the Aussie’s yield advantage likely to be eroded over coming months, the AUD forecast is NEUTRAL TO NEGATIVE. GBP AUD stands at 1.9028.

US Dollar Exchange Ratew Forecast: USD Gains Run out of Momentum

The US DOLLAR (currency:USD) has suffered some downside in the global markets since the weekend.

It seems likely that an interest rate increase from the US Federal Reserve still remains some way off, so the forward move of recent months for the Greenback may be running out of momentum.

Tuesday’s highly disappointing US Durable Goods Orders data added to the impression that all is not quite right with America’s economy, so the outlook for the Buck is now NEUTRAL.

The GBP USD exchange rate stands -0.07 pct lower with a conversion rate of 1 GBP equals 1.51288

Latest Exchange Rates Today:

The Pound to Australian Dollar exchange rate is +1.41 pct higher with a conversion rate of 1 GBP equals 1.94573 AUD.
The Pound to Canadian Dollar exchange rate is +0.1 pct higher with a conversion rate of 1 GBP equals 1.89808 CAD.
The Pound to Euro conversion rate is -0.18 pct lower at 1.33935 GBP/EUR.
The Pound to New Zealand Dollar exchange rate is +0.61 pct higher with a conversion rate of 1 GBP equals 2.08048 NZD.
The Pound to US Dollar exchange rate is -0.07 pct lower with a conversion rate of 1 GBP equals 1.51288 USD.
The Pound to Rand conversion rate is +0.44 pct higher at 17.60666 GBP/ZAR.

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