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

Modified: Thursday, 19 December 2013 14:52 BST - Written by Ben Hughes

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

The POUND STERLING (currency:GBP) has leaked support against nearly all of the other major currencies during today’s session. Weaker than expected UK Retail Sales numbers, published earlier today, have caused a dip in support for the UK unit, adding to the impression that the Pound is overbought at its current level. Tomorrow morning’s finalised Q3 GDP figures have the potential to alter levels for Sterling, in the meantime GDP is expected to trade with a NEUTRAL bias.

The EURO (currency:EUR) has held its ground against Sterling on the day, meaning that GBP EUR trades at 1.1965. The single currency has performed with credit thanks to news which has emerged today that the eurozone’s Finance Ministers have reached a deal on the formulation for a beefed-up bailout fund to rescue the region’s failing banks. With this morning’s Irish Q3 GDPP data having beaten expectations, the near-term outlook is that the euro will trade on a NEUTRAL TO POSITIVE footing.

The US DOLLAR (currency:USD) has remained under pressure during today’s trading session in spite of last night’s announcement from the Federal Reserve that it is set to trim its $85bn per month Quantitative Easing programme by $10bn. This ‘token taper’ sees a smaller reduction than most analysts had been anticipating and the US central bank tempered the reduction by a commitment to keep American interest rates ultra low even if domestic unemployment drops off. The Buck is forecast to trade on a NEUTRAL TO NEGATIVE footing as a result.

The AUTRALIAN DOLLAR (currency:AUD) slumped to its lowest level since September 2009 during late trading yesterday. Investors’ knee-jerk reaction to the US Federal Reserve’s announcement of a QE cut saw the Aussie heavily sold-off, sending GBP AUD up to as high as 1.8559. However, GBP AUD has fallen back since as market participants factor-in a lower chance that America will be cutting its key interest rate any time soon. The Aussie is anticipated to trade on a NEGATIVE footing moving forward.

Relevant Exchange Rates (Publish: 19/12/2013 15:00 GMT)

The Pound Sterling to Australian Dollar exchange rate is trading down -0.2% at 1.84869 GBP/AUD.
The Pound Sterling to Euro exchange rate is trading down -0.08% at 1.19647 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.19% at 1.63521 GBP/USD.
The Euro to Australian Dollar exchange rate is trading down -0.13% at 1.54511 EUR/AUD.
The Euro to Pound Sterling exchange rate is trading up +0.08% at 0.83579 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.11% at 1.36669 EUR/USD.

The US Dollar to Australian Dollar exchange rate is trading down -0.01% at 1.13055 USD/AUD.
The US Dollar to Euro exchange rate is trading up +0.11% at 0.73169 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading up +0.19% at 0.61154 USD/GBP.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts