Foreign Exchange Rate Forecasts For GBP EUR AUD USD

Modified: Monday, 19 August 2013 16:30 BST - Written by James Fuller

STORY LINK Foreign Exchange Rate Forecasts For GBP EUR AUD USD

More positive House Price data from the UK economy earlier today has helped the POUND STERLING perform positively. The Rightmove House Price survey showed that British property prices have gained an annualised 5.5% this month – up from July’s 4.8%. However, the recent improvement which Sterling has enjoyed could filter away if Wednesday morning’s Public Sector Borrowing data reveals that the UK did not manage to pay down any of its national debt last month. The outlook for the Pound is NEUTERAL.

This morning’s Bundesbank monthly report noted that the European Central Bank’s recent guidance statement had explicitly failed to rule out a hike in eurozone interest rates. The EURO has managed to push ahead against the Dollar on the day as a result but the GBP EUR exchange rate has held steady at 1.1724. With no tier one data releases of note for the remainder of the week, Friday could be the next market moving day for EUR, with German GDP data and a whole of eurozone Consumer Confidence survey penned in for release. The single currency is expected to trade on a NEUTRAL TO NEGATIVE footing until then.

The AUSTRALIAN DOLLAR has plunged in value against the Pound today, sending GBP AUD up to as high as 1.7128 earlier. The Australian tender has leaked support on the day thanks to concerns regarding tonight’s Reserve Bank of Australia minutes. However, with the statement which accompanied the RBA’s August meeting proving to be slightly more pro-Aussie in tone than had been expected, the minutes may not harm the AUD as much as some investors are anticipating. The Aussie is expected to trade with a NEUTRAL TO POSITIVE bias in the near-term.

The US DOLLAR remains out of favour in the currency markets, meaning that the GBP USD exchange rate is currently trading at 1.5645. The Greenback has suffered over the past fortnight as market rumours regarding the US Federal Reserve’s next move increase. Levels for the Buck suggest that most investors believe that the Fed will not begin tapering QE next month, but surveys suggest that most analysts believe that next month will be the month for a reduction in asset purchase. The Dollar is expected to trade on a NEUTRAL footing in the lead-up to September’s Fed get-together.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts