Movement Forecast for Pound Sterling Australian Dollar Exchange Rate GBP AUD

July 21, 2015 - Written by John Cameron

STORY LINK Movement Forecast for Pound Sterling Australian Dollar Exchange Rate GBP AUD

The news at the end of last week’s trading session that Germany’s parliament had given its policymakers the go-ahead to open talks on the nuts and bolts of a third debt bailout for Greece takes the heat off Athens, and possibly the euro (currency:EUR) for a while at least.

Whether the news marks the end of the beginning or the beginning of the end of the long debt saga remains to be seen, but either way international investors remain far from convinced and the Pound Sterling euro exchange rate spiked to above the 1.4400 threshold during late trading on Friday. Part of the move higher was driven by comments from Bank of England (BoE) Governor Mark Carney who suggested on Thursday that a UK interest rate hike could be forthcoming ‘at the turn of the year’. Notwithstanding these comments, the Pound Sterling euro exchange rate is now forecast to stabilise during coming months.

The expectation is now exists that, with most of the near-term news regarding the ongoing ‘Greek Tragedy’ out in the open, it may be another of the sixteen most actively traded global currencies which takes over the mantle of worst performer. The Canadian Dollar (currency:CAD) could take this questionable honour following last week’s announcement from the Bank of Canada that it was cutting its key interest rate to a fresh record low of 0.50%. The news came in response to the continued low level of the global oil price and levels of concern regarding the state of the Canadian economy could be ramped up this week if Thursday afternoon’s Retail Sales numbers disappoint.

Meanwhile, no man is an island and no currency stands alone either. The Bank of Canada’s actions of last week caused a generalised shift out of the export-driven Commodity Dollars from investors in anticipation of similar interest rate cuts from the Reserve Bank of Australia (RBA) and the Reserve Bank of New Zealand (RBNZ). Tomorrow morning’s RBA minutes and Wednesday morning’s Australian inflation data will be seminal in forming analysts’ forecasts for the Aussie moving forward.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Australian Dollar Forecasts Canadian Dollar Forecasts Currency Predi Forecasts