Foreign Currency Exchange Rate Predictions For GBP EUR AUD USD

Modified: Monday, 15 July 2013 15:15 BST - Written by John Cameron

STORY LINK Foreign Currency Exchange Rate Predictions For GBP EUR AUD USD

The POUND STERLING has continued to perform meekly on the global currency markets so far today, drifting lower against the majority of the other sixteen most-actively traded currencies. The continued shift out of Sterling has been driven by the Bank of England’s comments of ten days’ ago, but if tomorrow morning’s UK inflation figures show that British price rises are on the up once more, the BoE’s hands may be tied regarding any future loosening of monetary policy. For this reason, the outlook for Sterling is NEUTRAL.

A quiet day for European data releases has seen the EURO trade sideways so far this session. Tomorrow proves to be a market-moving day for the single currency, with the publication of the latest German ZEW Index and June’s whole of eurozone inflation data. The near-term momentum for GBP EUR is to the downside and the pair has traded down to as low as 1.1539 so far today. The euro is expected to trade on a NUTRAL TO POSITIVE footing moving forward.

Last night’s Chinese GDP growth data for Q2 was disappointing, showing a dip from Q1’s corresponding print of 7.7%. However, the figure was not as disappointing as many analysts had been anticipating, meaning that the AUSTRALIAN DOLLAR has clawed back some of the losses which it incurred against Sterling at the end of last week during early trading today. However, with further interest rate cuts from the Reserve Bank of Australia likely, the Aussie is expected to trade on a NEGATIVE footing moving forward. The current GBP AUD exchange rate stands at 1.6628.

The US DOLLAR has firmed against Sterling during the early part of today’s session, sending GBP USD down to as low as 1.5023 earlier. However, a weak set of US Advance Retail Sales data for last month, released within the last few minutes, has seen the Greenback weaken off once again as investors price-in a higher likelihood that QE is here to stay in the States. The Buck is expected by analysts to trade on a NEUTRAL TO NEGATIVE footing in the short term.

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