Pound To Euro (GBP EUR) Exchange Rate Prediction And Forecasts For AUD, USD

Published: Monday, 4 March 2013 14:00 BST - Written by John Cameron

STORY LINK Pound To Euro (GBP EUR) Exchange Rate Prediction And Forecasts For AUD, USD

The EURO has lost a little ground against both the US Dollar and the Pound so far today. Continued investor concerns regarding the power vacuum in Italy has counted against the single currency on the day and the news that Latvia has applied to join the eurozone had done little to improve sentiment towards the euro. Many market participants feel that the last thing the debt-burdened region needs at this juncture is yet another peripheral state adopting the EUR. The single currency is forecasted to trade on a NEUTRAL footing in the near-term. The Pound euro exchange rate (currency : GBP EUR), stands at 1.1572.

Another day, another dismal UK Purchasing Managers’ Index survey. This morning’s gauge of activity levels in Britain’s construction sector showed at its lowest level since the Autumn of 2009. The POUND STERLING suffered as a consequence and there could be further downside to come later in the week for the UK tender if the Bank of England’s monetary policy committee elects to increase the UK’s Quantitative Easing programme on Thursday. In the meantime, the outlook for Sterling is NEUTRAL TO NEGATIVE.

The US DOLLAR enjoyed pronounced support during the early part of today’s European session as investors sought out a safe haven due to concerns over the weekend news that US President Barack Obama had put his signature to a sequester order which will impose $85bn of spending cuts upon the flailing American economy. The current Pound Dollar exchange rate (currency : GBP USD) stands at 1.5047 and the Greenback is expected to trade with a NEUTRAL TO POSITIVE bias moving forward.

The AUSTRALIAN DOLLAR has given up a significant amount of ground against Sterling on the day, sending the Pound Australian Dollar exchange rate (currency : GBP AUD) up to 1.4828 this afternoon. The continuing political impasse in Italy, in combination with the weekend announcement of $85bn of budgetary cuts in the US has taken the edge off global risk appetite, hurting the ‘Aussie’. Last night’s disappointing Non-manufacturing PMI survey in China and fears that the Reserve Bank of Australia may opt to trim interest rates tonight have further fuelled the move against the AUD.

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