Currency News, Morning Indicators and Today?s British Pound Sterling Australian Dollar GBP AUD Forecast

August 20, 2015 - Written by John Cameron

STORY LINK Currency News, Morning Indicators and Today?s British Pound Sterling Australian Dollar GBP AUD Forecast

Will the British Pound gain on Euro and US Dollar Today? Finance Data Ahead

After surging on Tuesday in response to the UK's slightly better-than-expected Consumer Price Index, the Pound pared gains against the EUR & USD as the week continued. The Pound extended declines against the Euro, falling to 1.39, after the UK's retail sales report fell slightly short of forecasts and investors responded positively to the resignation of Alexis Tsipras. The UK is set to release public finance data today and the report could impact GBP to EUR, USD trading.

Pound Sterling Conversion Rate Predictions Today: Will GBP Gain on AUD, EUR, USD?

As currency traders across Europe get to their desks in London, Frankfurt and Paris for the start of the day’s session, our leading analyst takes a look at the vital statistical indicators from the overnight Asian session which will shape price action for the Pound Sterling (currency : GBP) against the other major currencies.

Global Equities Markets – Risk Off: Sentiment Causing Currency Market Movement

The latter part of yesterday’s session saw a pronounced equities sell-off, with London’s benchmark FTSE 100 ending the day down by 1.80% at 6,403 as institutional traders ‘took profit’ ahead of expected monetary policy tightening in the UK and the USA during coming months. The shift lower brought the UK’s leading index to within sight of its 52-week low of 6,183. The euroland’s bourses suffered similar losses, while the broad-ranging S&P 500 index in the US dropped by a less concerning 0.83% on the session; the shift out of risk Stateside was, at least in part, driven by yesterday evening’s publication of the minutes of the US Federal Reserve policy meeting which revealed that America’s policymakers believed that the conditions necessary for a US rate hike ‘were approaching’ when they met last month. Taking a look at the VIX ‘Fear Index’, which spiked by over 10% during yesterday’s US trading day, it’s clear that investors are in no mood for risk-laden assets.

Forex News Now: Pound Sterling Australian Dollar Forecast GBP AUD

The downward move for stocks was confirmed during last night’s Asian session which has seen China’s beleaguered equities markets once again lose ground – at the time of writing it is trading down by almost 2% on the day as the Shanghai SSE Composite’s horror run continues. It looks unlikely that the dip in investor sentiment has worked its way through just yet. The upshot is forecast to send the Pound Sterling higher once more against the risk-driven Commodity Dollars. Expect the Pound to record sustained gains versus the export-dependent Australian Dollar which may send the GBP AUD exchange rate back up to above the 2.1500 threshold.

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