Foreign Exchange Rate Forecasts/Predictions For GBP EUR USD AUD

November 21, 2013 - Written by Tim Boyer

STORY LINK Foreign Exchange Rate Forecasts/Predictions For GBP EUR USD AUD

The POUND STERLING (currency:GBP) has moved forward against most of the other sixteen most-actively traded global currencies so far today thanks to this morning’s UK public finances data which revealed that Britain’s coalition government managed to pay down a higher than anticipated £6.4bn last month. The Pound Sterling is expected to trade on a NEUTRAL TO POSITIVE footing in the run up to next Wednesday’s domestic Gross Domestic Product numbers.

The EURO (currency:EUR) has traded on an even keel so far today in spite of this afternoon’s assertion from Jeroen Dijsselbloem, the head of the eurogroup of Finance Ministers, that his body is rapidly losing patience with Greece. The prospect of another flare-up of the messy debt stand-off between the eurozone and Greece which sent GBP EUR up to close to 1.2900 during the Summer of 2012 looks possible. With this in mind, the single currency is forecast to trade with a NEUTRAL TO NEGATIVE bias in the short term. The current Pound to Euro exchange rate exchange rate stands at 1.1975 GBP/EUR.

The AUSTRALIAN DOLLAR (currency:AUD) has suffered pronounced selling pressure during the past 24hrs for two primary reasons. Firstly, last night’s heavy hints from the US Federal Reserve that the days of easy money may be numbered has hit the high-yielders hard. Secondly, today’s speech from Reserve Bank of Australia Governor Glenn Stevens stating that his bank would counsel the use of direct currency market intervention in order to weaken the Aussie. The outlook for the Australian Dollar exchange rate is now bleak – AUD is predicted to trade on a NEGATIVE footing in the near-term.

The US DOLLAR (currency:USD) has leaked support against Sterling so far today, sending Pound to Dollar exchange rate up to as high as 1.6142 GBP USD earlier. The move against the Greenback appears to be counter-intuitive following last night’s comments from the Federal Reserve suggesting that QE could be on its way out. Public statements from Federal Reserve policymakers will be closely watched for further clues, but in the meantime the Buck is expected to trade on a NEUTRAL TO POSITIVE footing.

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