Foreign Exchange Rate Predictions For EUR GBP USD AUD

Modified: Wednesday, 24 July 2013 19:53 BST - Written by Tim Boyer

STORY LINK Foreign Exchange Rate Predictions For EUR GBP USD AUD

The EURO was boosted earlier today by the news that the combined level of activity in the eurozone’s manufacturing sector has increased. The latest euro area PMI manufacturing survey has helped the single currency to slightly strengthen against the Pound so far, sending the GBP EUR exchange rate down to 1.1585. The outlook for the single currency is NEUTRAL TO POSITIVE ahead of tomorrow morning’s German IFO Business Climate survey.

The POUND STERLING has traded sideways today as investors holding Sterling-denominated assets nervously await tomorrow morning’s Q2 GDP growth data from the UK economy. Expectations are high for the figure, with most analysts anticipating a quarterly increase in economic activity of 0.6%. Anything less than this and the Pound could suffer, meaning that the British tender heads into tomorrow on a NEUTRAL TO NEGATIVE footing.

The US DOLLAR remains out of favour in the currency markets as investors price-in a higher likelihood that the Federal Reserve’s Quantitative Easing policy is here to stay. September’s Federal Reserve FOMC meeting could prove key to the Greenback’s short-to-medium term fortunes; any suggestion from Fed policymakers that a trimming of the US QE programme is likely at this get-together would see the Buck well-supported. The current GBP USD exchange rate stands at 1.5357 and the outlook for the Dollar is NEUTRAL TO POSITIVE.

Last night’s Australian CPI inflation numbers have hurt the AUSTRALIAN DOLLAR so far today. The price rise numbers showed at a lower level than had been anticipated, leading analysts to suggest that another interest rate cut from the Reserve Bank of Australia might be on the cards sooner rather than later. The GBP AUD exchange rate has registered healthy gains as a consequence, climbing to as high as 1.6708 earlier. The Aussie is expected to trade with a NEGATIVE bias moving forward.

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