Currency Exchange Rate Forecasts For GBP To EUR, USD & AUD

Published: Friday, 9 November 2012 15:00 BST - Written by Ben Hughes

STORY LINK Currency Exchange Rate Forecasts For GBP To EUR, USD & AUD

Yesterday’s positive performance for the POUND STERLING was too good to be true – Sterling has fallen back to earth with a bump today, following this morning’s UK construction sector data which showed a sharp annualised contraction. Some reasonable British trade figures weren’t enough to save the Pound on the day. Sterling is expected to trade on a NEUTRAL footing in the near term.

Meanwhile, the EURO has also endured a relatively disappointing day. French and Italian Industrial Production figures both came out weaker than had been anticipated and the single currency continued to perform meekly following ECB President Mario Draghi’s warning of yesterday that activity in the eurozone would remain ‘weak’. The current GBP EUR exchange rate stands at 1.2541 and the euro is expected to trade with a NEUTRAL TO NEGATIVE bias moving forward.

The US DOLLAR has been the best performing of the major currencies on the day, along with the Japanese Yen. The Greenback has benefitted from a wave of safe haven funds which have been pushed its way thanks to ongoing concerns regarding how Greece’s debt crisis resolve itself. With London’s FTSE 100 trading down by over 1% on the day so far, next week could see an extension to the current flight to safety, meaning that the Buck is expected to trade on a NEUTRAL TO POSITIVE footing in the short term. The current GBP USD exchange rate sits at 1.5920.

The AUSTRALIAN DOLLAR has managed to weather the shift out of risk on the day and trades on a level against the Pound, meaning that the current GBP AUD exchange rate stands at 1.5955. The Teflon-coated ‘Aussie’ has avoided losses on the day thanks to the Reserve Bank of Australia’s decision earlier in the week to maintain domestic interest rates at their current level of 3.25%. The RBA’s resistance to change means that the AUD is expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

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: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts