Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, CHF

October 17, 2011 - Written by John Cameron

STORY LINK Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, CHF

POUND STERLING

The Pound has performed reasonably on the day against all of the majors, with the exception of the low-yielding Yen and US Dollar. This has been in spite of a report by the Ernst & Young’s widely-respected Item Club, predicting a slowdown in British economic activity and the release of the latest Rightmove House Price survey, which showed that the annualised increase in UK house prices is decelerating. NEAR -TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP/USD) is 1.5775

The US Dollar has traded into positive ground today as global share markets suffer a wobble. The uncertainty has been triggered by Eurozone policy-makers continued procrastination in formulating a workable policy for dealing with the region’s long drawn-out debt crisis. Friday’s positive US Retail Sales figures appear long-forgotten. NEAR-TERM OUTLOOK – NEGATIVE.


EURO – The Pound Euro exchange rate (GBP/EUR) is 1.1459

No Eurozone data of note today meant that there was additional focus on the fall-out from this the recent G20 Finance Ministers’ European debt crisis summit. Europe’s single currency came under pressure when an official spokesman for German Chancellor Angela Merkel stated that there may not be an action plan in place by the end of this week, as the markets had been expecting. Tomorrow morning’s German ZEW Sentiment Survey will be closely-watched for some hint of an improvement in Europe’s powerhouse economy. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


AUSTRALIAN DOLLAR – The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5395


The Australian Dollar has lost ground against nearly all of the other sixteen most-actively traded currencies during today’s session. The GBP/AUD rate’s brief incursion below 1.5300 at the end of last week looks to have been very short-lived and with equities markets suffering on the day over worries about the lack of a Eurozone plan to tackle the region’s debt crisis, further downside is possible for the Aussie. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


SWISS FRANC – The Pound Swiss Franc exchange rate (GBP/CHF) is 1.4157

Market rumours suggest that the Swiss National Bank is set to further weaken the Franc by raising the lower limit that it will not let the EUR/CHF rate drop below from 1.20 to 1.30. In the absence of any significant Swiss data for the remainder of the week and with the threat of further action by the SNB, the Franc is lacking appeal for investors. NEAR-TERM OUTLOOK – NEGATIVE.


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