Exchange Rate Forecast for British Pound Sterling, Euro, US Dollar and Australian Dollar

February 26, 2015 - Written by John Cameron

STORY LINK Exchange Rate Forecast for British Pound Sterling, Euro, US Dollar and Australian Dollar

Today’s session promises to be a big one for the POUND STERLING (currency:GBP), with the publication of provisional Q4 Gross Domestic Product figures due at 0930hrs. Analysts are anticipating they will show that British economic activity held steady at an annualised 2.7% during the final three months of last year. Anything below this and Sterling is forecast to trade on a NEUTRAL TO NEGATIVE footing against the other major global currencies.

The main event for investors holding the EURO (currency:EUR) during today’s session comes in the form of this month’s German employment data. Economists believe that the numbers will show that the overall level of joblessness in the giant Teutonic economy remained at the same level as in January. However, the recent firmer than anticipated tone of German data releases hints that the data may please to the upside. Even still, the outlook for the single currency remains firmly NEGATIVE. The GBP EUR exchange rate stands at 1.3640.

The US DOLLAR (currency:USD) has continued to soften against Sterling during the past 24hrs following Tuesday’s comments from Fed Chair Janet Yellen which raised questions over the veracity of the apparent improvement in the state of the American labour market. This afternoon’s US inflation figures are the main event for the Buck today – if, as expected, they show that the US economy has entered a period of deflation, then the Greenback is likely to lose further ground against the other major tenders. The Dollar forecast is therefore NEUTRAL TO NEGATIVE and GBP USD sits at 1.5508.

The AUSTRALIAN DOLLAR (currency:AUD) enjoyed sustained support against the Pound during yesterday’s trading following a go-ahead set of economic statistics, released in China during the Asian trading session. The numbers showed that the level of output from China’s manufacturing sector had unexpectedly increased, providing grounds for optimism from Australia’s plentiful exporters. However, with global commodity prices remaining weak, the danger remains that the Reserve Bank of Australia will countenance another near-term interest rate cut. The Aussie is therefore forecast to trade with a NEUTRAL TO NEGATIVE bias moving forward. GBP AUD stands at 1.9658.

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