FX Outlook & Forecast for British Pound Sterling EUR USD AUD

April 17, 2015 - Written by John Cameron

STORY LINK FX Outlook & Forecast for British Pound Sterling EUR USD AUD

The POUND STERLING (currency:GBP) outperformed most of the other sixteen most actively traded global currencies during yesterday’s session. The Pound gained as investors continued to express their relief at the fact that early-week statistics showed that the UK economy had avoided deflation last month. This morning’s domestic jobs data will shape the near-term fortunes for the Pound – a drop in the overall level of unemployment from 5.7% to 5.6% is the consensus expectation amongst analysts. Anything less than this and the Pound is predicted to perform on a NEUTRAL TO NEGATIVE footing moving forward.

The EURO (currency:EUR) endured a volatile day in the markets yesterday following comments regarding the ongoing Greek debt crisis from international policymakers. The shared currency was held back by European Union Commissioner Pierre Moscovici’s assertion that there is, ‘no political will in Europe for Greek debt cut’. An encouraging report on the growth prospects of the vast German economy from four leading economic institutes was not enough to save the euro on the day; the single currency is forecast to trade with a NEGATIVE bias moving forward and the GBP EUR exchange rate sits at 1.3902.

The US DOLLAR (currency:USD) has softened in the markets since a disappointing set of domestic labour market data, published earlier this month. Yesterday afternoon’s US weekly jobs numbers once again hurt the Buck and the American unit badly needs a high showing from this afternoon’s US inflation data in order to stage a recovery. The outlook for the Greenback is NEUTRAL TO NEGATIVE and the GBP USD exchange rate stands at 1.4919.

The AUSTRALIAN DOLLAR (currency:AUD) was the top-performing currency in the markets yesterday as investors shifted back into Aussie-denominated assets thanks to the publication a stronger than anticipated set of local labour market data. Official numbers pointing to an increase in inflation expectations amongst Australian economic participants added to the go-ahead mood enveloping the Aussie. However, fears of a Greek exit from the euroland could weaken the Aussie at a moment’s notice, meaning that the Australian Dollar forecast is NEUTRAL TO NEGATIVE. The GBP AUD exchange rate stands at 1.9144.

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