Losses Forecast For British Pound Sterling vs Australian Dollar After RBA Announcement

March 3, 2015 - Written by John Cameron

STORY LINK Losses Forecast For British Pound Sterling vs Australian Dollar After RBA Announcement

Exchange Rate Forecasts for the Pound Sterling to Australian Dollar Conversion

GBP/AUD, USD/AUD, NZD/AUD & EUR/AUD Exchange Rate Losses Forecast

The closely-monitored VIX ‘Fear Gauge’ slumped to its lowest level since before Christmas when trading got underway in North America following the weekend market shutdown yesterday.

VIX dropped to as low as $13.45 during New York’s morning session as investors continued to express their relief that Greece appears to have averted a messy exit from the euroland, (for the next four months, at least). VIX had been as high as 25.20 during the middle part of December.

Shares Soar as Risk Sentiment Spikes

The shift out of safe haven assets was further illustrated by the move to a fresh 15-year intraday high of 6,974.26 during the European trading day.

As recently as the middle part of December, London’s benchmark share index had plunged towards the 6,000 threshold, so the near-term recovery marks a significant turnaround.

Analysts forecast that the increased appetite for risk will favour the Commodity Dollars against the Pound Sterling (currency:GBP), meaning that the GBP AUD, GBP NZD and GBP CAD exchange rates may drop moving forward.

Pound to Australiuan Dollar Exchange Rate Falls

Meanwhile, there was movement for the Pound Australian Dollar exchange rate during the overnight Asian session with the latest monetary policy announcement from the Reserve Bank of Australia (RBA). Investors had been split on whether Australia’s central bank would opt to trim its Cash Rate from 2.50%.

In the end, the RBA decided that, with commodity prices showing some forward movement over the past month, and with some grounds for optimism regarding China’s economic situation, the best policy would be to ‘wait and see’.

The GBP AUD exchange rate tumbled from yesterday’s high of 1.9852 down to an intraday low of 1.9610 a short time ago in response to the news.

Analysts forecast that there could be further losses to come for GBP AUD in the near-term.

Door Open for Further RBA Cuts

However, RBA Governor Glenn Stevens injected a large shot of doubt into proceedings when he left the door firmly open for future rate cuts by stating in his accompanying commentary that, 'further easing of policy may be appropriate over the period ahead, in order to foster sustainable growth in demand and inflation consistent with the target.’

Latest Exchange Rates Today:

The Pound to Australian Dollar exchange rate converts -0.78 per cent lower at 1 GBP is 1.96491 AUD.
The Euro to Australian Dollar exchange rate is -0.77 pct lower with a conversion rate of 1 EUR equals 1.43000 AUD.
The US Dollar to Australian Dollar exchange rate is -0.82 pct lower with a conversion rate of 1 USD equals 1.27881 AUD.
The Swiss Franc to Australian Dollar exchange rate is -1.06 pct lower with a conversion rate of 1 CHF equals 1.33081 AUD.
The Canadian Dollar to Australian Dollar exchange rate is -0.39 pct lower with a conversion rate of 1 CAD equals 1.02404 AUD.
The Hong Kong Dollar to Australian Dollar exchange rate is -0.82 pct lower with a conversion rate of 1 HKD equals 0.16490 AUD.
The New Zealand Dollar to Australian Dollar exchange rate converts -0.15 per cent lower at 1 NZD is 0.96623 AUD.

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