Currency Rate Forecasts For The Pound Sterling, US Dollar, Euro and Australian Dollar

Published: Thursday, 15 March 2012 16:00 BST - Written by Tim Boyer

STORY LINK Currency Rate Forecasts For The Pound Sterling, US Dollar, Euro and Australian Dollar

Bad news for the UK economy earlier today – leading credit ratings agency Fitch issued a report stating that it was placing Britain’s credit rating under review, meaning that there is a 50% probability that UK debt will lose its AAA status. With no further UK tier one economic data releases penned in for the remainder of this week’s session, the development could weigh down Sterling as the weekend approaches, meaning that the GBP trades with a NEUTRAL TO NEGATIVE bias in the near-term.


The EURO started the day with some positive momentum, as the European Central Bank’s monthly report alluded to ‘stabilisation’ in the European economy. The report went on to predict that price inflation in the region would remain above 2% for the remainder of the year. This took the GBP EUR exchange rate all the way down to 1.1972 on the day and sees the single currency trade with a NEUTRAL bias moving forward.


Slightly higher than anticipated US Producer Price Index figures earlier today hinted at the return of inflationary pressures in the American economy. The data seemingly makes a further tranche of QE for the US economy even more remote, providing further support for the USD. The current GBP USD exchange rate is 1.5668 and the Greenback is trading on a NEUTRAL TO POSITIVE footing.


The AUSTRALIAN DOLLAR has recovered its poise during today’s session, following a serious wobble yesterday. Downside pressure on the Aussie yesterday was caused by failed stress tests by four US retail banks including Citi, which caused a shift out of risk by institutional investors. Today’s session has seen steady gains for European and Asian indices, taking the AUD higher and causing the GBP AUD exchange rate to tumble back down to 1.4881. The Aussie is expected to trade with a NEUTRAL TO POSITIVE accent moving forward.

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: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts