Foreign Currency Exchange Rate Forecasts For EUR, USD, GBP and AUD For Today

Published: Tuesday, 28 August 2012 16:00 BST - Written by James Fuller

STORY LINK Foreign Currency Exchange Rate Forecasts For EUR, USD, GBP and AUD For Today

The EURO has made gains against both the US Dollar and the Pound on the day, taking the GBP EUR exchange rate down to 1.2578. The move has come in spite of escalating concerns regarding Spain’s public finances following the revelation that Catalonia, an autonomous region of the Iberian state, is seeking a €5bn bailout from Madrid. A better than anticipated German GfK Confidence survey helped steady the ship.

The US DOLLAR has moved forward a little against the Pound today, but not as much as might have been anticipated given that global shares are slightly down on the day and the weak tone of recent Chinese data releases appears to have taken the edge of global risk appetite. It appears that institutional investors are still cautious of Greenback-denominated holdings thanks to fears that the Fed may be set to ramp up its QE programme later in the year. The current GBP USD exchange rate sits at 1.5786.

The POUND STERLING has failed to assert itself in the global currency market on the day. Although last Friday’s Q2 GDP figure brought an upward revision, it also served to remind investors that levels of economic activity in the UK had plummeted in the three months to the end of June. With very little UK data due for release for the remainder of the week, Sterling may remain out of favour for a little while.

Last night’s Asian session saw the release of the latest HIA New Home Sales figures in Australia. The July data came out well below expectations, showing a pronounced and worrying drop off from June’s counterpart number. This has caused some selling pressure on the AUSTRALIAN DOLLAR during today’s session. Aussie downside could pick up momentum if the eurozone’s debt crisis begins to dominate the headlines once more. The current GBP AUD exchange rate sits at 1.5227.

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