Currency Exchange Rate Forecasts For Pound Sterling, Euro, Australian Dollar & Canadian Dollar

Modified: Monday, 1 October 2012 15:53 BST - Written by Tim Boyer

STORY LINK Currency Exchange Rate Forecasts For Pound Sterling, Euro, Australian Dollar & Canadian Dollar

This morning’s UK PMI Manufacturing survey and Mortgage Approvals data for August provided cause for disappointment, both coming out weaker than anticipated. This has seen the POUND STERLING open up the week on the back foot. Recent comments from the Bank of England’s monetary policy committee members have suggested that a further loosening of monetary policy may be on the cards soon rather than later, meaning that Sterling is expected to trade on a NEGATIVE footing ahead of Thursday’s BoE policy announcement.

This morning brought the grim announcement that some 18.2m eurozone workers are now out of a job. This is a new euro-era record. However, on the credit side, the latest edition of the whole-of-eurozone PMI Manufacturing survey printed at a stronger than anticipated level. In truth, today’s figures didn’t tell us anything new and the relative strength of the single currency is likely to be determined by comments and announcements by Europe’s policymakers regarding the region’s ongoing debt crisis, in the short-term at least. The current Pound to EURO exchange rate stands at 1.2499.

Share markets have generally posted a strong showing on the day, lending support to the AUSTRALIAN DOLLAR. However, by the end of today’s European equities session, the GBP AUD exchange rate had only fallen slightly – to 1.5560. It appears likely that institutional investors are sitting on their hands ahead of tomorrow morning’s Reserve Bank of Australia policy decision. As ever, the tone of the Australian central bank’s accompanying commentary will be at least as significant as the decision itself. In the meantime, the Aussie is expected to trade with a NEUTRAL bias.

The CANADIAN DOLLAR has stemmed its losses of last week against the Pound so far today, sending the GBP CAD exchange rate down to 1.5857. An easing of tensions during the weekend close appears to have benefitted the CAD, as the eurozone remains one of Canada’s key export partners. Friday’s domestic unemployment data could prove key for the ‘Loonie’, in the intervening period, it appears that the downselling of the Canadian tender may have run its course and the CAD is expected to trade on a NEUTRAL TO POSITIVE footing.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: Australian Dollar Forecasts Canadian Dollar Forecasts Currency Predi Forecasts