Sterling Exchange Rate Forecasts: GBP to USD, AUD, & CAD

Published: Friday, 28 September 2012 16:00 BST - Written by Ben Hughes

STORY LINK Sterling Exchange Rate Forecasts: GBP to USD, AUD, & CAD

Today’s session has passed without notable incident for the POUND STERLING. On the credit side, activity in the UK’s key services sector increased by a monthly 1.1% in July, having contracted in August. However, the British economy is still in contraction according to the latest GDP growth figures. While this fact remains, Sterling is likely to trade on a NEUTRAL TO NEGATIVE footing.

Meanwhile, the US DOLLAR has made up a small amount of ground against the Pound on the session, taking the GBP USD exchange rate down to 1.6152 this afternoon. A day of losses for global shares has seen the Buck supported, while this afternoon’s US Personal Consumption Expenditure figures printed as expected, doing nothing to dint support for the Greenback. With this in mind, the Dollar is expected to trade with a NEUTRAL TO POSITIVE bias.

The major data release this afternoon has come from Canada; July’s annualised GDP growth number for July showed below expectations at 1.9%. The news hurt the CANADIAN DOLLAR, sending the GBP CAD exchange rate up as high as 1.5928. The apparent cooling of Canada’s economy means that the Loonie is expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term.

Elsewhere, the AUSTRALIAN DOLLAR has given up much of the gains which it registered during this morning’s European session since lunchtime. Last night’s Japanese data, which pointed to a strong contraction in the nation’s manufacturing sector last month, has slowly fed into investors’ thinking, taking the edge off their appetite for risk. Analysts anticipate that the Aussie will trade with a NEUTRAL TO NEGATIVE footing into next week.

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