Foreign Exchange Rate Predictions For GBP EUR AUD USD

Modified: Thursday, 10 October 2013 17:00 BST - Written by David Woodsmith

STORY LINK Foreign Exchange Rate Predictions For GBP EUR AUD USD

As was widely predicted, the Bank of England opted to maintain interest rates at 0.50% and the UK’s QE programme at £375bn earlier today. With no accompanying statement to sway the market, the POUND STERLING has drifted on the day. With little in the way of tier one data releases to shift Sterling during the remainder of the week, the Pound is expected to trade on a NEUTRAL footing as we head towards the weekend shutdown.

The EURO has remained strong against Sterling so far today meaning that the GBP EUR exchange rate is currently trading at 1.1794. This morning’s European Central Bank monthly report reiterated Mario Draghi’s recent ‘Forward Guidance’ statements that eurozone interest rates will remain low for years to come. The single currency has stayed firm in spite of this, but a delayed reaction cannot be ruled out. For this reason, the euro is expected to perform in a NEUTRAL TO NEGATIVE fashion moving forward.

The AUSTRALIAN DOLLAR has continued to trade on a firmer footing against the other sixteen most actively traded global currencies so far today. The Aussie has been assisted by a stronger than expected domestic Overall Unemployment Rate figure of 5.6%, released during last night’s Asian session. With recent economic indicators on the up and up and a debt deal likely to be announced in the US with the week, the Australian unit is forecast to trade on a NEUTRAL TO POSTIVE footing in the short-to-medium term.

Last night’s Federal Reserve minutes revealed that a large proportion of America’s policymakers expressed severe doubts about the continuation of America’s $85bn per month Quantitative Easing programme at its current level. The US DOLLAR has performed with credit on the day as a result; gains for the Greenback would surely have been of a greater magnitude were it not for this afternoon’s disappointing US Initial Jobless Claims data. The current GBP USD exchange rate is 1.5948 and the Buck is forecast to trade with a NEUTRAL bias moving forward.

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