Foreign Currency Exchange Rate Predictions For GBP EUR USD AUD

Modified: Tuesday, 6 August 2013 17:55 BST - Written by Ben Hughes

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

The POUND STERLING has basked in the glory of yesterday’s strong UK PMI Services survey and today’s Manufacturing and Industrial Production numbers. The collective releases significantly beat expectations, however it should be noted that all three data sets are relative and that they were all running at a low level a short time ago, so some improvement was to be anticipated. The outlook for Sterling ahead of tomorrow’s Bank of England inflation report is NEUTRAL TO NEGATIVE.

The EURO has pushed ahead against Sterling so far today sending the GBP EUR exchange rate down to 1.1535 earlier. This morning’s Italian GDP growth data came out marginally ‘less bad’ than analysts had been fearing, providing a slight tailwind for the single currency. Tomorrow morning’s German Industrial Production data will afford the euro further direction and the single currency is expected to trade on a NEUTRAL TO POSITIVE footing in the near-term.

The US DOLLAR has traded sideways against Sterling today as investors sit on their hands ahead of next month’s potentially game-changing Federal Reserve FOMC policy announcement. So far, last Friday’s better than expected US overall unemployment figure has failed to trigger any support for the Greenback, but this may mean that a sizeable amount of pent up demand exists for the Buck. For this reason, the outlook for the US Dollar is classed as NEUTRAL TO POSITIVE. The current GBP USD exchange rate stands at 1.5383.

The AUSTRALIAN DOLLAR has managed to whether an overnight domestic interest rate cut as well as a weaker than expected trade balance figure so far today. In fact, the Antipodean tender even managed to record some healthy gains against the Pound in early trading, sending the Sterling to Australian Dollar exchange rate down to as low as 1.7055 this morning. The Aussie has relinquished a fair amount of these early gains since New York opened, however the feeling persists that all of the bad news may now be out regarding the Australian economy, meaning that the AUD is forecast to trade with a NEUTRAL bias moving forward.

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