Currency News

Daily Exchange Rate Forecasts & Currency News

Pound Sterling GBP Forecast to Drift Lower against Australian Dollar AUD, New Zealand Dollar NZD GBP forecast lower vs AUD NZD

August 25, 2015 - Written by John Cameron

GBP Dips against AUD, NZD Conversion Rates on Chinese Intervention



The Pound Sterling exchange rate remained trending at elevated levels against the Canadian Dollar but gave up some of its gains against rivals like the Australian and New Zealand Dollars after the People's Bank of China (PBoC) loosened fiscal policy and supported a rebound in global stocks.

Earlier...

Calmer Global Markets See Pound Sterling Exchange Rate Recoup Losses, GBP Trends Higher against EUR, GBP to AUD Falls



A modicum of calm returned to the global financial markets during today’s session following the outright turmoil of yesterday. The Pound Sterling (currency : GBP) clawed back around 1% of its losses against the euro (currency : GBP) on the day, while the UK unit drifted lower against the high-yielding Commodity Dollars, with the GBP AUD exchange rate dropping back down into the 2.1700s, while the Pound New Zealand Dollar exchange rate slumped to as low as 2.4043 GBP NZD.

The omens did not look good for the European markets when Shanghai’s SSE Composite index shed another 7.63% during last night’s session. The move brought the losses on the week for China’s leading equities index to over 15% - analysts normally consider a drop of 10% in the weeks and months following a market’s peak to signify the emergence of a ‘bear market’. The sharp move lower of such an extent during a 48hr period was worrying to say the least.

Euro Conversion Rate Pares Black Monday's Gains, EUR to USD, GBP Slip Today



However, when London’s FTSE re-opened for business this morning, it immediately traded higher. At one point, the UK’s benchmark index had climbed by over 3.0% on the day as UK investors regained some semblance of their previous appetite for risk. The euro area’s bourses climbed by an even larger amount, with Frankfurt’s Dax gaining almost 5.0% and Paris’s Cac 40 jumping by over 4.0% on the day.

Advertisement
The Northern Hemisphere’s stock indices were buoyed by last night’s announcement from the People’s Bank of China that it was set to cut its key interest rate by 25 basis points from 4.85% to a relatively lowly 4.6%. The move was widely welcomed by market participants, with JP Morgan summing up the mood in the camp by stating that, ‘China's decision to cut will be regarded by many investors as overdue. The litmus test will come overnight, however, and the efficacy of the cut in boosting the domestic stock market.’

Pound Sterling Foreign Exchange Predictions: GBP Forecast to Fluctuate against AUD, NZD, CAD



If the venerable investment bank’s forecast proves correct, then tonight’s Shanghai trading session will be key in determining the future direction of the Pound Sterling against the risk-driven Australian Dollar, New Zealand Dollar and Canadian Dollar (currency : CAD).
Like this piece? Please share with your friends and colleagues:

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 Daily Currency Forecasts

Comments are currrently disabled