Currency Exchange Rate Forecast : GBP EUR Rate Could Rise, AUD And USD Could Also Strengthen

Published: Friday, 26 October 2012 16:00 BST - Written by Minesh Chaudhari

STORY LINK Currency Exchange Rate Forecast : GBP EUR Rate Could Rise, AUD And USD Could Also Strengthen

This afternoon’s US Q3 GDP growth data bettered expectations, printing at an annualised 2.0% - up from Q2’s 1.3% showing. Cynics will say that the suspiciously large uptick for the figure is due to the impending Presidential election in the States. Whichever way, the US DOLLAR has firmed this afternoon, sending the GBP USD exchange rate down to 1.6090. The Greenback is expected to perform on a NEUTRAL TO POSITIVE footing moving forward, with this afternoon’s slightly weaker than anticipated Michigan Sentiment survey unlikely to spoil the Buck’s party.

The EURO has endured a relatively poor week in the currency markets thanks to ongoing disappointment following the failure of last Friday’s leaders’ summit to yield any new policy announcement. Wednesday’s whole of eurozone Composite PMI survey came out well below expectations, adding to the negativity surrounding the single currency. The current GBP EUR exchange rate stands at 1.2463 and the euro is expected to trade with a NEUTRAL TO POSITIVE bias in the near-term.

The POUND STERLING has had an ‘even-steven’ sort of day against the other majors following yesterday’s positive GDP data-driven performance. With little in the way of tier one UK data releases due in the next seven days, the potential exists that Sterling will continue to bask in the glory of yesterday’s relatively encouraging growth figures. However, Monday’s Mortgage Approvals data for last month have the potential to send Sterling lower again. In the meantime, the Pound is expected to trade on a NEUTRAL TO POSITIVE footing.

Wednesday morning’s domestic inflation figures could prove to be a crunch release for the AUSTRALIAN DOLLAR. The figures showed that the rate of Australian price rises remains higher than expected, meaning that an interest rate rise by the Reserve Bank of Australia now looks a lot less likely. The ‘Aussie’ is now expected to trade with a NEUTRAL TO POSITIVE bias into next week.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts