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

Published: Wednesday, 4 April 2012 18:00 BST - Written by John Cameron

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

The EURO endured a poor day on the markets today as fears grew over the state of Spain’s public finances. The troubled Iberian state failed to shift its full allocation of government bonds at today’s auction – this sent out worrying signals to investors, and sent Spanish debt yields spiralling. The ECB’s decision to keep interest rates on hold had a neutral effect, but the single currency heads into tomorrow on a NEGATIVE footing. The current GBP EUR exchange rate is 1.2091.


The POUND STERLING put in a strong performance on the day, following some encouraging UK services sector data. If tomorrow’s manufacturing and industrial production numbers show similar strength, the Sterling could head into the Easter break trading to a NEUTRAL TO POSITIVE bias.


The US DOLLAR has outperformed almost all of the other major currencies during today’s session, as institutional investors developed a severe case of the jitters following a poor uptake at Spain’s latest bond auction. This saw the GBP USD exchange rate dip to 1.5877. The ECB’s mention of a possible ‘exit strategy’ added to the downward movement in global appetite for risk, providing further support for safe-haven Greenback. The Dollar heads into tomorrow on a NEUTRAL TO POSITIVE footing.


The AUSTRALIAN DOLLAR has remained out of favour over the past 24hrs, taking the GBP AUD exchange rate up to its current level of 1.5481. Widening European bond yields hit global appetite for risk, causing market participants to trim the high-risk positions. If Friday’s Non-Farm Payrolls data in the States shows that less than 200,000 new jobs were created in the giant US economy last month, then there could be further losses to come for the Aussie, meaning that it trades with a NEUTRAL TO NEGATIVE bias moving forward.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts