Currency Exchange Rate Predictions For GBP EUR USD AUD

Modified: Thursday, 17 October 2013 09:10 BST - Written by David Woodsmith

STORY LINK Currency Exchange Rate Predictions For GBP EUR USD AUD

Better than anticipated UK unemployment numbers, released yesterday morning, weren’t enough to stop the POUND STERLING putting in a poor performance on the session. The losses which Sterling has suffered in the past ten days could well be nothing more than a technical correction. For this reason many analysts are expecting the Pound to trade with a NEUTRAL TO POSITIVE bias moving forward, but this morning’s UK retail sales numbers could negate any potential support for Sterling.

The EURO continues to perform strongly versus the other majors partly thanks to Tuesday’s highly encouraging German ZEW survey. However, yesterday’s whole of eurozone inflation numbers served as a reminder that the European Central Bank still has the leeway to cut interest rates. The current GBP EUR exchange rate stands at 1.1786 and the single currency is expected to trade on a NEUTRAL bias moving forward, providing this morning’s eurozone construction output figure does not place a spanner in the works.

The US DOLLAR continued to edge forward against Sterling yesterday, sending the GBP USD exchange rate down to as low as 1.5895 on the day. Price action for the Greenback suggested that investors believed that US policymakers would avoid a catastrophic debt default by agreeing a deal - when news of an accord came, the Buck weakened slightly, sending GBP USD close to 1.6000. The move looks a clear example of 'buy on the rumour, sell on the news'. The near-term forecast is for the Buck to perform in a NEUTRAL TO POSITIVE fashion.

The AUSTRALIAN DOLLAR has continued to perform well against Sterling throughout the past 24hrs. Support for the Aussie has sent the GBP AUD exchange rate down to 1.6672 overnight. With further interest rate cuts unlikely from the Reserve Bank of Australia in the near term, the Australian tender is likely to continue to bully Sterling. The positive effect which the US debt deal is likely to have on global appetite for risk means that the outlook for the Aussie is NEUTRAL TO POSITIVE.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts