British Pound Sterling FX Forecast Versus Euro, US Dollar & Australian Dollar EUR USD AUD

April 16, 2015 - Written by John Cameron

STORY LINK British Pound Sterling FX Forecast Versus Euro, US Dollar & Australian Dollar EUR USD AUD

The POUND STERLING (currency:GBP) has put in an improved performance during the first half of this week’s session. Tuesday’s domestic Consumer Price Index figures provoked a small relief rally for Sterling by dint of the fact that they revealed that the British economy had avoided slipping into deflation - for another month at least. Tomorrow morning’s UK jobs numbers could be vital to the Pound – in the near-term the UK unit is forecast to trade on a NEUTRAL TO NEGATIVE bias.

The EURO (currency:EUR) continues to be weighed down by concerns that Greece’s new left-wing leadership may not come up with an acceptable list of economic reforms by the 24th April deadline which the eurogroup of Finance Ministers has set. The European Central Bank’s ongoing Quantitative Easing programme continues to flood the market with euro-denominated assets, so the outlook for the shared currency remains NEGATIVE. The Pound Sterling Euro GBP EUR exchange rate stands at 1.3885.

The US DOLLAR (currency:USD) has put in a tame performance over the past 48hrs thanks to Tuesday afternoon’s domestic Advance Retail Sales numbers which showed at a below-par 0.9%. The market is particularly sensitive to American data releases following the Federal Reserve’s assertion last month that a considerable improvement in the tone of US economic statistics would be required before it would countenance an interest rate hike. The upshot leads analysts to forecast that the Greenback will trade on a NEUTRAL TO NEGATIVE footing moving forward. GBP USD stands at 1.4740.

Support for the AUSTRALIAN DOLLAR (currency:AUD) slumped during the early part of this week as official figures out of China suggested that the level of imports into the world’s second largest economy dropped dramatically last month. Yesterday’s growth data which revealed that the annualised level of expansion in China’s GDP had dropped back to 7.0% during the first quarter of this year added to the Aussie’s woes. The global price of Australia’s number one export - iron ore - has dropped further as a consequence and the Aussie Dollar is likely to perform on a NEUTRAL TO NEGATIVE bias moving forward. The Pound Sterling Australian Dollar exchange rate stands at 1.9382.

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