Losses Forecast for Pound Sterling GBP vs AUD, NZD: Commodity Currencies Rally Today

August 27, 2015 - Written by John Cameron

STORY LINK Losses Forecast for Pound Sterling GBP vs AUD, NZD: Commodity Currencies Rally Today

FX ALERT & USD News: British Pound Falls against US Dollar after US GDP Data

For the second session on the trot, better than anticipated US data has provoked selling pressure on the Pound Sterling US Dollar GBP USD exchange rate. Building on yesterday’s encouraging US Durable Goods Data figures, this afternoon’s far stronger than anticipated US Gross Domestic Product data has apparently hastened the timing of the next Federal Reserve interest rate hike. Analysts had been anticipating a year-on-year showing of 3.2% from the headline number, so the result of 3.7% buoyed the Buck considerably.

Fed Rate Hike Bets Climb, USD Rallies, Pound Falls from Best Conversion Rates against AUD, NZD

Nancy Curtin of Close Brothers Asset Management observed following the release that the, ‘healthy upwards revision to US GDP should act as a much needed soothing balm for investors after the turbulence of this week.’ She went on to assert that, ‘yes, the Chinese slowdown is making its mark on the performance of US manufacturing, and the natural resource sector is still reeling from lower commodity prices. However, today's figures should underline the resilience of the US economy in light of global headwinds.’

Most market participants took the number as a de facto green light for the Fed to countenance a tightening of policy this year – many analysts now forecast that rate ‘liftoff’ Stateside could take place as soon as next month.

Currency Market Predictions: Surging Equities Give Australian, New Zealand Dollars a Boost - More Gains Ahead?

Elsewhere, risk appetite was in go-ahead mood today even before the US data release, thanks to a generalised improvement for global stock markets. Shanghai’s benchmark SSE Composite index, which has been the source of much of this week’s flight to safety, closed up by over 5% last night. European markets followed suit, with London’s benchmark FTSE 100 trading up by over 3% shortly before the closing bell. The shift back into risk-laden assets from investors has seen the Pound Sterling incur significant losses on the days against the Commodity Dollars with the GBP AUD exchange rate and the GBP NZD exchange rate peeling back to trade down to as low as 2.1506 and 2.3802 respectively. Analysts forecast that if equities continue to surge, these pairs could lose further ground.

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 Daily Currency Updates New Zea Forecasts