Daily Foreign Currency Exchange Rate Predictions For GBP To EUR, USD & AUD

Published: Tuesday, 2 October 2012 16:00 BST - Written by Minesh Chaudhari

STORY LINK Daily Foreign Currency Exchange Rate Predictions For GBP To EUR, USD & AUD

The UK economy has expanded during the last three months, according to the British Chambers of Commerce. The independent body found that British economic activity expanded by half a percentage point, more than cancelling out the 0.4% which it contracted by in the three months to the end of June. The news has failed to convince investors that the POUND STERLING is out of the woods yet – Sterling has performed no more than moderately today and is expected to trade on a NEUTRAL footing ahead of Thursday’s Bank of England announcement.

Meanwhile, the EURO has registered a healthy gain against the Pound, sending the GBP EUR exchange rate down to 1.2490. The comeback for the single currency has been fuelled by this morning’s slightly higher than anticipated whole of eurozone Producer Price Index data for August and by yesterday’s encouraging PMI Manufacturing survey. The single currency is expected to trade with a NEUTRAL TO NEGATIVE bias in the near-term.

The US DOLLAR has continued to slightly firm-up in the currency markets on the day. Although risk has been off the menu for the majority of the past week or two, the Greenback has failed to move forward sharply due to investors reticence to hold USD-denominated assets ahead of Thursday evening’s Federal Reserve FOMC minutes. The current GBP USD exchange rate stands at 1.6145 and the Buck is expected to trade on a NEUTRAL footing, at least until Thursday.

The AUSTRALIAN DOLLAR has been the best-performing of the sixteen most-actively traded currencies on the day, following the Reserve Bank of Australia’s surprise decision to trim interest rates by 25 basis points earlier this morning. This has propelled the GBP AUD exchange rate to 1.5659. Tonight’s domestic Trade Balance figures could hurt the Aussie, but in the meantime, it is anticipated that the AUD will trade with a NEUTRAL TO POSITIVE footing.

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