Today?s Currency Exchange Rate Predictions For GBP EUR USD & AUD

Modified: Monday, 20 August 2012 16:00 BST - Written by John Cameron

STORY LINK Today?s Currency Exchange Rate Predictions For GBP EUR USD & AUD

Today brought yet another poor session for the EURO, sending the GBP EUR exchange rate up to 1.2765 this afternoon. The selling pressure on the single currency was not driven by any specific data releases, but instead by comments from the Bundesbank suggesting that a decision by the ECB to extend its bond purchase scheme would be a mistake. It looks like the move against the euro is a long way away from bottoming out yet.

Meanwhile, the POUND STERLING has traded virtually level against nearly all of the other majors. This week sees a quiet data schedule in the lead-up to Friday’s GDP growth figures, however tomorrow’s UK public sector borrowing data has the potential to turn the markets against the Pound once more. The Pound can only bask in the relative glory of last Friday’s encouraging July Retail Sales numbers for so long…

The US DOLLAR has benefitted from the return of ‘risk-off’ trading during this afternoon’s session. This has caused the GBP USD exchange rate to dip as low as 1.5677. A re-ignition of fears regarding a potential fissure between Germany and debt-addled Southern European states has the potential to trigger further downside for this pair in the near-term.

The AUSTRALIAN DOLLAR showed some signs of recovering against the Pound in early trading today, as institutional investors took heart from Friday’s positive US Michigan Sentiment index and got involved in shares once again. However, the Aussie’s recovery has stalled this afternoon and if tonight’s Reserve Bank of Australia minutes are less upbeat than July’s, then the AUD could lose further ground as we head towards the middle part of the week.

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