Foreign Currency Exchange Rate Forecasts For Euro, Pound, Australian Dollar & US Dollar

Modified: Thursday, 5 September 2013 18:55 BST - Written by David Woodsmith

STORY LINK Foreign Currency Exchange Rate Forecasts For Euro, Pound, Australian Dollar & US Dollar

The EURO suffered a body blow earlier today when the European Central Bank President Mario Draghi revealed that the policy committee which he heads discussed a possible interest rate cut at their latest meeting. Draghi’s assertion that the eurozone’s retail banks need to have their balance sheets shored up added to the selling pressure on the single currency. The forecast for the euro is NEUTRAL TO NEGATIVE and the current GBP EUR exchange rate is 1.1875.

The POUND STERLING has experienced significant volatility so far today. GBP lost ground in the lead up to the Bank of England’s lunchtime policy announcement as investors expressed their fears regarding the potential content of the statement which accompanied the release. Sterling steadied a little in the wake of the publication thanks to a lack of nasty surprises from the BoE. Given the encouraging nature of data releases coming out of the UK in recent weeks, the Pound is expected to trade on a NEUTRAL TO POSITIVE footing moving forward.

The AUSTRALIAN DOLLAR has endured a torrid day in the currency markets, leaking support during early trading following a poor overnight set of domestic trade numbers for July, before steadying somewhat during the European session. Buoyant levels of risk appetite from market participants have assisted the Aussie’s recovery on the day, but with the situation in Syria unlikely to be rapidly resolved, this situation may not last. The Aussie is predicted to trade with a NEUTRAL TO NEGATIVE bias moving forward and the current GBP AUD exchange rate (GBP AUD) stands at 1.7088.

The US DOLLAR has marginally outperformed the Pound so far today, but has shot forward against the euro. However, slightly weaker than anticipated ADP Unemployment data and Initial Jobless Claims numbers do not augur well for tomorrow afternoon’s all-important US Non-Farm Payrolls print. A disappointing NFP showing will make a tapering of QE from the Fed less likely later this month, meaning that the Greenback is expected to trade on a NEUTRAL TO NEGATIVE footing in the near-term. The GBP USD exchange rate stands at 1.5621.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts