Gains Expected for Pound Sterling Australian Dollar Exchange Rate GBP AUD

November 11, 2015 - Written by Frank Davies

STORY LINK Gains Expected for Pound Sterling Australian Dollar Exchange Rate GBP AUD

OECD's Dovish Outlook sees AUD, NZD and ZAR Forecasts Altered

The Organisation for Economic Co-operation and Development (OECD) is not ordinarily an outfit given to hyperbole, but comments from the austere establishment earlier this week bordered on hyperbole.

The OECD’s report, which described the slowdown in global trade which has taken place during recent months as ‘deeply concerning’, was considered highly significant and caused investors to alter their forecasts for the export-driven Australian Dollar (currency : AUD), New Zealand Dollar (currency : NZD) and South African Rand (currency : ZAR).

The strong words from the OECD follow last weekend’s Chinese trade figures which, for the twelfth month on the trot, pointed to a drop in the level of imports into the world’s second largest economy.

The year-on-year drop of almost 20% in the volume of shipments into China was particularly worrying according to the OECD, given that that the it posited that Asia’s premier economy, which was previously the driver for global growth, is now ‘at the heart’ of the worldwide cooling of economic activity.

As recently as last November the OECD forecast that the global economy would expand at a healthy 3.7% this year; this week’s report saw this prediction slashed to a relatively lowly annualised 2.9%.

UK Jobs Data to Provoke Sterling Volatility Today

Elsewhere, this morning’s UK jobs data is forecast to provoke pronounced price action for the Pound Sterling (currency : GBP).

If the headline overall joblessness figure drops below last month’s reading of 5.4%, then expect the Pound euro exchange rate to push on towards the 7 ½ year high which it broke to during the Summer.

GBP to AUD Conversion Rate Predicted to Fluctuate on Australian Labour Market Data

Meanwhile, looking further ahead, the latest Australian jobs data, due for publication during the early hours of tomorrow morning, has the potential to propel the Pound Aussie Dollar exchange rate back up towards the 2.2000 GBP AUD threshold, if once again it misses analysts’ expectations.

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TAGS: Australian Dollar Forecasts Pound Sterling Forecasts