Today?s Currency Exchange Rate Forecasts For The US Dollar, Euro, Australian Dollar and Pound Sterling

Published: Wednesday, 28 March 2012 18:00 BST - Written by Ben Hughes

STORY LINK Today?s Currency Exchange Rate Forecasts For The US Dollar, Euro, Australian Dollar and Pound Sterling

The POUND STERLING hit the headlines earlier today, when official British government figures showed that UK economic activity contracted by 0.3% in the last three months of 2011. This was a weaker reading than analysts had been expecting hitting the Pound hard. UK Current Account data, released this morning, also served to disappoint, meaning the Sterling heads into tonight’s Asian session on a NEUTRAL TO NEGATIVE footing.

The US DOLLAR has put in a strong showing in the currency markets today, out-performing all of the other sixteen most-actively traded global currencies, with the notable exception of the Yen. This has taken the GBP USD exchange rate down to 1.5866. The Greenback has benefitted from the release of significantly weaker-than-anticipated US Durable Goods orders data, out earlier, which suggested that consumers in the world’s leading economy are postponing big-ticket purchases due to a lack of confidence. Coupled with a poor performance for global share markets, this sees the Dollar trade with a NEUTRAL TO POSITIVE bias.

All was calm on the western front for the EURO today, as the only tier one data release in the eurozone came out broadly in line with expectations. The German CPI Inflation numbers suggested that price rises are under control in Europe’s powerhouse economy. A strong print for tomorrow morning’s German Unemployment Change data could give the single currency added impetus, causing the euro to trade on a NEUTRAL TO POSITIVE footing in the near-term. The current GBP EUR exchange rate is 1.1926.

The AUSTRALIAN DOLLAR has leaked support on the currency markets today. Nervousness amongst institutional investors regarding the outcome of Friday’s eurogroup debt summit dragged down global equities markets lower. The shift out of risk hurt the Aussie, taking the GBP AUD exchange rate to its current level of 1.5298. The AUD is expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term.

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