British Pound Foreign Currency Forecast vs Euro, US Dollar and Australian Dollar

March 12, 2015 - Written by John Cameron

STORY LINK British Pound Foreign Currency Forecast vs Euro, US Dollar and Australian Dollar

The POUND STERLING (currency:GBP) once again put in a ‘steady as she goes’ type of performance during yesterday’s session. January’s UK Manufacturing and Industrial Production data came out slightly below par, but the Pound still managed to record strong gains against the euro as investors tripped over themselves to get out of the single currency. Yesterday afternoon’s NIESR GDP Growth Estimate for the UK economy showed that quarterly pace of expansion of the British economy had remained at 0.6% during the three months to the end of February. Analysts forecast that the UK tender will perform on a NEUTRAL TO POSITIVE footing moving forward.

The EURO (currency:EUR) was hammered in the global currency markets during yesterday’s trading. Comments from European Central Bank Chief Mario Draghi suggesting that he remained determined to re-inflate the euroland economy back to target levels of inflation hurt the shared currency and continued fears that Greece’s new hard-line left wing leaders may be preparing to drag their debt-troubled nation out of the euro added to investors’ concerns. It is difficult to point to anything positive on the horizon for the euro – at some stage the single currency will become oversold, but that stage has not been reached yet. The euro is predicted to perform on a NEGATIVE footing moving forward and GBP EUR stands at 1.4151.

The US DOLLAR (currency:USD) continued to bathe in the reflected glory of last Friday’s go-ahead domestic jobs figures during yesterday’s session in the global currency markets. The encouraging labour market numbers caused futures markets to pull forward their expectations regarding a Federal Reserve interest rate hike. Meanwhile, the euro’s continued woes caused the EUR USD exchange rate to plummet and the Buck climbed against other currencies thanks to arbitrage trades. The outlook for the Buck is now NEUTRAL TO POSITIVBE and GBP USD stands at 1.4910.

The AUSTRALIAN DOLLAR (currency:AUD) suffered a pronounced overnight dip during Wednesday’s Asian session thanks to a weak set of Chinese Industrial Production and Retail Sales figures. China continues to represent the number one destination for Australia’s plentiful exports, so the fresh evidence of a Chinese economic slowdown came as a blow to the Aussie. On the domestic front, January Home Loans data, also published on Wednesday, suggested that Australians are securing less finance against properties, adding to the impression that all is not quite right with Australia’s economy. The outlook for the Aussie is NEUTRAL TO NEGATIVE and the GBP AUD exchange rate stands at 1.9674.

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