Foreign Currency Exchange Rate Predictions : GBP EUR Forecast, USD & AUD

Published: Tuesday, 6 November 2012 16:00 BST - Written by Frank Davies

STORY LINK Foreign Currency Exchange Rate Predictions : GBP EUR Forecast, USD & AUD

Weak UK economic data held back the POUND STERLING during this morning’s session. The latest British Industrial Production and Manufacturing Production numbers showed at well below expectations, raising fears that the UK’s real economy is a long way off where it needs to be. The prospects for Sterling moving forward hang on Thursday’s Bank of England policy announcement. Investors holding the Pound will be hoping for a ‘no change decision’, in the meantime, Sterling trades on a NEUTRAL TO NEGATIVE footing.

The EURO has fared only slightly better than the Pound on the day. On the credit side, this morning’s whole of euro zone PPI inflation data beat expectations, causing analysts to water down their bets on a near-term rate cut by the ECB. However, on the debit side, dismal German Factory Orders data for September held back the single currency. The current GBP EUR exchange rate stands at 1.2475 and the euro is expected to trade with a NEUTRAL bias moving forward.

The US DOLLAR has traded sideways against the other majors on the day so far. All bets are off for the Greenback as the American electorate go to the polls to vote for their next president. A decisive result would be likely to benefit the ‘Buck’; conversely a disputed outcome could well see market participants move out of Dollar-denominated assets. Pending the result, the GBP is likely to trade on a NEUTRAL footing. The current GBP USD exchange rate stands at 1.5979.

The AUSTRALAIN DOLLAR has been the strongest-performing of the sixteen most-actively traded currencies so far during today’s session following last night’s decision by the Reserve Bank of Australia to keep interest rates ‘on hold’ at 3.25%. The decision could mean that the RBA’s rate cutting cycle is at end. Because of this the ‘Aussie’ is expected to trade with a NEUTRAL TO POSITIVE bias in the near-term. The GBP AUD exchange rate sits at 1.5316 currently.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts