Exchange Rate Predictions / Forecasts For Pound Sterling, Australian Dollar, Euro & US Dollar

Modified: Wednesday, 4 December 2013 17:24 BST - Written by Minesh Chaudhari

STORY LINK Exchange Rate Predictions / Forecasts For Pound Sterling, Australian Dollar, Euro & US Dollar

The POUND STERLING (currency:GBP) has put in a tepid performance so far today thanks to a disappointing Purchasing Manager Index survey of the UK’s combined services sector, released earlier. Tertiary industries comprise over three quarters of the UK’s economic output so the figure spelled bad news for Sterling. The outlook for the Pound ahead of tomorrow Bank of England policy announcement is NEUTRAL.

The AUSTRALIAN DOLLAR (currency:AUD) has incurred heavy losses in the market so far today following last night’s publication of Q3 Gross Domestic Product figures which revealed that Australian economic activity was at a lower than anticipated level during the three months to the end of September. The development sent the GBP AUD exchange rate up to yet another multi-year high at 1.8158, confirming the pair’s pronounced uptrend which began last Easter. The Aussie is now forecast to trade with a NEGATIVE bias moving forward.

The EURO (currency: EUR) has held its ground so far today in spite of this morning’s publication of a report from Markit stating that the eurozone economy ‘lost some momentum’ last month. Today’s whole of eurozone Gross Domestic Product data for Q3 came out as per expectations at -0.4% - hardly a ringing endorsement of the European Central Bank’s monetary policies. The single currency is expected to trade on a NEUTARL TO NEGATIVE footing in the lead up to tomorrow afternoon’s ECB policy announcement and the GBP EUR exchange rate currently stands at 1.2030.

The US DOLLAR (currency: USD) has clawed back some of the losses which it incurred against Sterling during the early part of the week during today’s session, sending the GBP USD exchange rate down to as low as 1.6322 earlier. The price action for the Buck suggests that this evening’s Federal Reserve Beige Book may hint that Quantitative Easing is on its way out in the States. If this proves to be the case, then the Greenback is expected to trade on a NEUTRAL TO POSITIVE footing moving forward.

Relevant Foreign Exchange Rates (04/12/2013 17:30 GMT)

The British Pound Sterling to Australian Dollar exchange rate is trading up +1.26% at 1.81713 GBP/AUD.
The British Pound Sterling to Euro exchange rate is trading up +0% at 1.20581 GBP/EUR.
The British Pound Sterling to US Dollar exchange rate is trading down -0.1% at 1.63726 GBP/USD.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Dollar Pound Forecasts Forecasts