Losses Forecast for Pound Sterling US Dollar Exchange Rate GBP USD, Gains for GBP AUD

July 21, 2015 - Written by John Cameron

STORY LINK Losses Forecast for Pound Sterling US Dollar Exchange Rate GBP USD, Gains for GBP AUD

The anticipated data highlights from the global currency markets for the week commencing 20th July have led analysts to forecast that this could be a week of considerable movement for the Pound Sterling (currency:GBP) pairs. Our head analyst takes a look at what this might mean for the Pound against the Australian Dollar (currency:AUD) and the US Dollar (currency:USD) below.

The first tier one data release of note this week comes in the early hours of tomorrow morning with the publication of the minutes of the July meeting of the Reserve Bank of Australia (currency:AUD). Movement is almost guaranteed for the AUSTRALIAN DOLLAR (currency:AUD) during the aftermath of the release of the notes; most analysts forecast that, with global commodity prices remaining low, the RBA will hint at further interest rate cuts this side of Christmas. If Wednesday’s Aussie headline year-on-year inflation figures print at below the expect 1.7%, then economists are likely to forecast that the Aussie will perform on a NEUTRAL TO NEGATIVE footing against the Pound Sterling in the near-term. The Pound Sterling Aussie exchange rate currently stands at 2.1110.

Meanwhile, movement is also likely for the US DOLLAR (currency:USD) this week. Federal Reserve Chair Janet Yellen has upped the ante for the Buck by suggesting last week that it is ‘likely’ that US interest rates will be on their way upwards this year. All the Greenback requires now is a flurry of go-ahead domestic data to fuel speculation of a December interest rate increase. Wednesday and Friday bring the publication of a brace of housing sector data in the States; the latest Existing Home Sales figures lead the way and they are forecast to determine the near-term trajectory for the Buck. A month on month increase of 0.90% is anticipated and such an outcome would be likely to see the Pound Sterling US Dollar exchange rate edge lower from its current level of 1.5598. The forecast for the Greenback is NEUTRAL TO POSITIVE.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts