Exchange Rate Predictions For Today For the Australian Dollar, Pound Sterling, US Dollar and Euro

Published: Monday, 27 February 2012 18:00 BST - Written by David Woodsmith

STORY LINK Exchange Rate Predictions For Today For the Australian Dollar, Pound Sterling, US Dollar and Euro

The POUND STERLING endured a largely lacklustre day on the markets today. This morning’s Hometrack Housing survey showed that British house prices had not budged for the second month in succession. In a quiet week for UK data releases, Sterling is likely to trade with a NEUTRAL bias, while the other majors make a move.

There was good news for the EURO late in today’s session, as German MPs voted by a resounding majority to back Greece’s second bail-out package of €130tn. Anything other than a ‘yes’ vote would have been a disaster for Europe’s single currency, which is now expected to trade with a NEUTRAL TO POSITIVE bias in the near-term. The current GBP EUR exchange rate is 1.1816. Tomorrow morning’s German inflation data could hurt the euro if it comes in lower than anticipated.

The US DOLLAR has seen some support on the day, due to its status as global investors’ safe haven currency of choice. This took the GBP USD exchange back down to 1.5827 this afternoon. All major UK and European share indices closed down on the day, as market participants continued to fret about violence in Syria, Iran’s ongoing nuclear programme and eurozone debt uncertainty. However, there remains the potential for global equities markets to open higher tomorrow, following German MPs’ backing for Greece’s recent bail-out. This means that the outlook for the Greenback is NEAUTRAL TO NEGATIVE.

The AUSTRALIAN DOLLAR has seen sustained support since global currency markets re-opened for the week yesterday evening. This saw the GBP AUD dip by over 1% on the day to trade down to 1.4694 during this afternoon’s European session. The Aussie has benefitted from an uptick in global appetite for risk following this afternoon’s ‘yes’ vote from Germany’s parliament to Greece’s bailout. If potential geo-political hotspots including Iran and Syria remain under control, then the Aussie is likely to trade with a POSITIVE bias in the near-term.

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