GBP/EUR, GBP/AUD & GBP/USD Exchange Rate Forecasts & Predictions

Modified: Thursday, 14 November 2013 21:43 BST - Written by Ben Hughes

STORY LINK GBP/EUR, GBP/AUD & GBP/USD Exchange Rate Forecasts & Predictions

Policy decisions and predicted actions from the Bank of England, Reserve Bank of Australia and the US Federal Reserve have shaped the GBP/EUR, GBP/AUD and GBP/USD exchange rates in recent days.

Industry insider Ben Hughes sets exchange rate targets and explains his future forecasts for these pairs below.

GBP/EUR Exchange Rate Forecast To Climb On Eurozone GDP Data

The POUND EURO EXCHANGE RATE (GBP/EUR) has displayed surprising price action over the last seven days. The shift higher to slightly below the 1.2050 threshold in the aftermath of the European Central Bank interest rate cut of last Thursday was widely anticipated, but the lack of support for the pair which followed was not. Today’s mildly disappointing whole of eurozone GDP numbers, which revealed that economic activity in the region dipped by a greater than expected 0.4% during the three months to September, has set the pair up for further near-term gains. The outlook for GBP EUR is now that the pair will GAIN, with its short-term target coming at last Thursday’s 10-month high of 1.2048.

GBP/AUD Exchange Rate Predicted to Edge Higher On RBA Comments

The POUND AUSTRALIAN DOLLAR EXCHANGE RATE (GBP/AUD) has been well-bid over the past 48-hours, sending the pair to as high as 1.7295 this afternoon. The renewed support for GBP AUD has been driven by the recent assertion by the Reserve Bank of Australia that it wants the Aussie to weaken. Although the latest UK inflation numbers, published on Tuesday, came out below expectations, the Bank of England is still expected to raise interest rates next year. This means that its 39-month high of 1.7485 looks possible target rate for GBP/AUD and that the pair will CONSOLIDATE/GAIN in the short term.

Losses Forecast For GBP/USD As Pair Tops Recent Range

The POUND US DOLLAR EXCHANGE RATE (GBP/USD) has spent the past week hovering either side of the 1.6000 threshold. Support for the Greenback remains flaky thanks to investors’ uncertainty at the timing of the Federal Reserve’s long-promised reduction to its $85bn per month Quantitative Easing programme. GBP USD has barely been above its current 1.6091 level since the summer of 2011, leaving the pair ripe for profit-taking. GBP/USD is forecast to CONSOLIDATE/GIVE UP GROUND moving forward, with 1.5428 providing a short-term target.

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