Daily Exchange Rate Forecasts/ Predictions For EUR GBP AUD CHF 12/11/2013

Modified: Tuesday, 12 November 2013 10:01 BST - Written by John Cameron

STORY LINK Daily Exchange Rate Forecasts/ Predictions For EUR GBP AUD CHF 12/11/2013

The EURO is once again confounding analysts on the day today and has gained ground against the other global majors in spite of last week’s interest rate cut from the ECB. Ongoing positive sentiment towards the single currency has sent GBP EUR down to as low as 1.1848 on the session with support for the eurozone tender remaining steady in spite of this morning’s flat German Consumer Price Index data. However, near term gains for the euro could be winding it up for larger medium term losses. The single currency is therefore forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward.

The POUND STERLING has put in a dismal performance against the other sixteen most actively traded global currencies on the day. Investors seem to have completely forgotten last week’s strong UK services sector figures, which were the best for some sixteen years, and have instead focussed on today’s significantly lower than anticipated UK CPI inflation numbers. Is the Bank of England really going to further loosen Britain’s monetary policy in response to today’s meek price rise numbers though? The outlook for Sterling is NEUTRAL.

The AUSTRALIAN DOLLAR has encountered a gusty headwind in the global currency markets during the past week. The shift out of Aussie-denominated assets has been driven by strong data releases from the US during the latter part of last week. A cut to the Federal Reserve’s QE scheme now looks likely in the short to medium term, meanwhile a further loosening of domestic monetary policy from the Reserve Bank of Australia is still on the cards. The Australian unit is forecast to trade with a NEUTRAL TO POSITIVE bias moving forward.

The Pound had been faring well against the SWISS FRANC until this morning’s weak UK inflation data. Support for the Franc took GBP CHF to as high as 1.4718 earlier as the Swiss tender gave up ground hand over fist. The move against the Swissie was fuelled by a temporary weakening of the euro, to which it is inextricably linked to via the Swiss National Bank’s ‘minimum floor’ for EUR CHF. The continued strong showing from global stocks, pointing to strong appetite for risk, has further weakened the safe haven Franc. The near term prospects for CHF are NEUTRAL TO NEGATIVE.

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TAGS: Australian Dollar Forecasts Currency Predictions Euro Forecasts Eur Forecasts