GBP EUR Exchange Rate Prediction For Today, USD & AUD Forecasts

Published: Tuesday, 18 December 2012 18:50 BST - Written by John Cameron

STORY LINK GBP EUR Exchange Rate Prediction For Today, USD & AUD Forecasts

This morning’s UK CPI inflation data surprised no one by printing at an annualised 2.7%, exactly as per expectations. However, the persistently high level of British inflation remains well above the UK government’s official 2.0% target. This may limit any further loosening of monetary policy by the BoE in the short term, meaning that the POUND STERLING is expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

The EUR USD exchange rate, which is by a long stretch the world’s most-traded currency pair, has broken to a new 7 ½ month high in early trading today, as market participants continued to shift out of US DOLLAR-denominated assets. The move out of the safe haven Greenback has followed a calming of several potential geo-political risk flare-ups in recent weeks including the eurozone’s debt crisis and the ongoing US ‘Fiscal Cliff’ talks. The current GBP USD exchange rate stands at 1.6220 and the ‘Buck’ is expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term.

The EURO has pushed ahead against both the Dollar and the Pound during today’s session. The single currency continues to benefit from last month’s Greek debt deal which qualified the Hellenic state for its next tranche of bailout funding. A significantly weaker than anticipated set of Irish GDP numbers this morning hasn’t dented the euros prospects too much. The current GBP EUR exchange rate stands at 1.2308 and the near-term outlook for the European tender is NEUTRAL TO POSITIVE.

The AUSTRALIAN DOLLAR has given up a significant amount of ground against the Pound so far during today’s session, propelling the GBP AUD exchange rate up to 1.5426. The shift out of the ‘Aussie’ has followed last night’s Reserve Bank of Australia minutes, which failed to provide investors with any clear future direction for the nation’s monetary policy. This left analysts to surmise that, given the RBA’s observation that Australia’s economy is faltering due to a lack of inward investment, the Australian central bank’s next move may be yet another interest rate cut. The current GBP AUD exchange rate stands at 1.5421 and the ‘Aussie’ is expected to trade on a NEUTRAL footing moving forward.

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