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

Modified: Monday, 6 January 2014 10:49 BST - Written by John Cameron

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

Below are the Exchange Rate Forecasts / Predictions for the Australian Dollar (AUD), Euro (EUR), Pound Sterling (GBP) & US Dollar (USD):

The AUSTRALIAN DOLLAR (currency:AUD) staged a mini-comeback against the Pound during the first two sessions of the year. It started 2014 at its lowest level against Sterling since 2009, so some profit-taking was to be expected from investors; however some analysts are now beginning to suggest that this could be more than a straightforward near-term technical correction for the Aussie. If tonight’s Australian Trade Balance figures add to the impression that all of the bad news is now out in the open for the Australian economy, then look for the Australian Dollar to perform in a NEUTRAL fashion in the short-term.

The EURO (currency:EUR) has been under pressure since the turn of the year as institutional investors begin pricing-in the potential for a further easing of the eurozone’s monetary policy by the European Central Bank during the early part of 2014. Lower than anticipated German inflation numbers this afternoon could send Pound Euro exchange rate back up towards its 11 ½ month high in the 1.2100s GBP/EUR, meaning that the single currency is forecast to trade with a NEUTRAL TO NEGATIVE bias moving forward.

The POUND STERLING (currency: GBP) posted decent gains against the euro and the Swiss Franc during the latter part of last week’s session, but gave up ground against the Commodity Dollars and the Greenback. Sterling remains vulnerable following Friday morning’s tame UK Manufacturing figures, so the outlook for the UK unit is NEUTRAL TO NEGATIVE ahead of tonight’s December edition of the closely-watched Halifax House Price survey.

The US DOLLAR (currency:USD) moved steadily away from its multi-month low against Sterling during the latter part of last week. This afternoon’s ISM survey of the services sector of the US economy will afford the Buck further near-term direction and a showing above the anticipated 54.5 level would surely send Cable lower as market participants bank on a higher percentage chance of more near-term cuts to Quantitative Easing from the Federal Reserve. The Greenback is expected to trade on a NEUTRAL TO POSITIVE footing for the remainder of the week.

Important Australian Dollar, Euro, Pound & US Dollar Exchange Rates (Publish: 10:30 GMT 06/01/2014)

The Pound Sterling to Australian Dollar exchange rate is trading down -0.2% at 1.82705 GBP/AUD.
The Pound Sterling to Euro exchange rate is trading down -0.37% at 1.20266 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.2% at 1.63777 GBP/USD.
The Euro to Australian Dollar exchange rate is trading up +0.18% at 1.51918 EUR/AUD.

The Euro to Pound Sterling exchange rate is trading up +0.37% at 0.83149 EUR/GBP.
The Euro to US Dollar exchange rate is trading up +0.17% at 1.36179 EUR/USD.
The US Dollar to Australian Dollar exchange rate is trading up +0.01% at 1.11557 USD/AUD.
The US Dollar to Euro exchange rate is trading down -0.17% at 0.73433 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading up +0.21% at 0.61059 USD/GBP.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts