Pound To Euro Exchange Rate Forecast, USD & AUD Predictions

Published: Wednesday, 5 September 2012 16:00 BST - Written by Ben Hughes

STORY LINK Pound To Euro Exchange Rate Forecast, USD & AUD Predictions

Today brings a blank day for tier one UK data releases, meaning that the POUND STERLING has traded with a neutral bias ahead of tomorrow’s keynote Bank of England monetary policy announcement. Expect Sterling to tumble if a surprise rate cut or more quantitative easing are announced. Friday afternoon’s NIESR GDP estimate for the British economy could also prove to be market-moving.

The US DOLLAR enjoyed a short bout of pronounced support earlier this morning, when a disappointing eurozone PMI survey triggered a flight to safety. This proved that the Greenback is still functioning as a safe-haven currency. The only caveat to this is that weak domestic data releases will now cause investors to price-in further QE for the States, weakening the Buck. Friday afternoon’s Non-Farm Payrolls data will provide the acid test of this. The current GBP USD exchange rate sits at 1.5926.

The EURO has enjoyed a steady day in spite of a generally disappointing set of eurozone PMI numbers earlier. The single currency needs the ECB to maintain its key lending rate at its current 0.75% level tomorrow. If Europe’s central bank resists a cut, which is being priced in by many analysts, then the euro could end the week on a high. The GBP EUR exchange rate is at 1.2647 currently.

Meanwhile, the AUSTRALIAN DOLLAR has come under sustained selling pressure over the past twelve hours, thanks to last night’s weaker than anticipated Q2 GDP figures. If tonight’s domestic employment data confirms the impression, which is rapidly becoming conventional wisdom, that economic activity in Australia is slowing, then things could get sticky for the Aussie in the near-term. The GBP AUD exchange rate stands at 1.2623.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts