Today's Pound Euro Exchange Rate Predictions : GBP to EUR & USD, AUD

Modified: Tuesday, 20 November 2012 17:10 BST - Written by John Cameron

STORY LINK Today's Pound Euro Exchange Rate Predictions : GBP to EUR & USD, AUD

The EURO has been the big loser in the currency markets during today’s session, sending the GBP EUR exchange rate upwards from 1.2405 in early trading all the way up to 1.2466 in the middle part of this afternoon’s equities session. The single currency has been hampered by the continued absence of a cogent policy to tackle Europe’s ongoing debt crisis from the region’s leaders. With more debt discussions scheduled for next week, the euro is expected to trade on a NEUTRAL TO NEGATIVE footing in the near term.

Meanwhile, the major news in the UK saw the widely respected Confederation of British industry call for an all-out bout of Keynesian demand creation in an attempt to extricate the nation’s struggling economy from its current woes. The POUND STERLING has made gains on the day, partly because of the CBI’s report, but also partly because it is not the euro. It is anticipated that Sterling will trade with a NEUTRAL TO POSITIVE bias moving into next week.

The US DOLLAR has had a steady day, losing only 0.05% against the Pound so far. Given last night’s passing of a crucial bill by Japan’s lawmakers, which will see Asia’s second most potent economic power avert its own fiscal cliff, further losses may have been expected for the Buck. However, continuing concerns regarding the eurozone’s debt problems have taken the edge off appetite for risk, providing support for the Greenback. The current GBP EUR exchange rate stands at 1.5877.

The AUSTRALIAN DOLLAR has lost a little ground against the Pound on the day, taking the GBP AUD exchange rate up to 1.5382. The slight movement out of Aussie-denominated assets has been triggered by a generalised ‘risk-off’ trading environment in the markets. However, these losses could easily be reversed in the early hours of next Tuesday morning if the latest Reserve Bank of Australia minutes reveal that the RBA has ended its rate cutting cycle. In the meantime, the Australian tender is expected to trade on a NEUTRAL footing.

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