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

Modified: Monday, 13 January 2014 14:42 BST - Written by John Cameron

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

With the exception of the Rand , the POUND STERLING has been the major loser in the global currency markets today. The move against the Pound is largely technical in nature following the UK tender’s break to multi-year highs against several of the other sixteen most-actively traded global currencies last week. However, the British government’s promise that it will honour all UK debts issued prior to the date of the referendum should Scotland vote for independence next year has added to the Sterling selling pressure. The outlook for the UK unit is now NEUTRAL TO NEGATIVE.

The EURO has remained strong on the day, sending the GBP EUR exchange rate back down below the 1.2000 threshold at 1.1980 earlier. The single currency has registered arbitrage gains against Sterling thanks to the continued relative weakness of the US Dollar which has kept the EUR USD exchange rate at the top of its recent range. Institutional investors now appear increasingly confident that all of the bad news is out for the euro meaning that the single currency is forecast to trade with a NEUTRAL TO POSITIVE bias moving forward.

The AUSTRALIAN DOLLAR has staged a storming comeback against Sterling since Friday afternoon’s US employment market data. A tame showing from the American job creation figure for December has caused an improvement in investor sentiment due to its effect on predictions for the possible timing of the next cut to Quantitative Easing in the States. November’s Australian Home Loans data, published overnight, has provided further help for the Australian unit which is now expected to trade on a NEUTRAL footing moving forward. The current GBP AUD exchange rate stands at 1.8040.

The US DOLLAR has improved against the Pound throughout today’s session, sending the GBP USD exchange rate down from above the 1.6500 level in early trading to 1.6364 a short time ago. Market participants now appear to have set Friday’s disappointing US job creation numbers to one side and are now focusing on the strong overall domestic unemployment data which was released at the same time. The implication is that the Fed now has the leeway to quickly cut its QE scheme as we head towards Q2 2014. A strong showing from tomorrow afternoon’s US Advance Retail Sales figures will be needed to cement this impression. In the meantime, the outlook for the Buck is NEUTRAL TO POSTIVE.

Important Australian Dollar, Euro, Pound & US Dollar Exchange Rates (Publish: 15:00 GMT 13/01/2014)

The Pound Sterling to Australian Dollar exchange rate is trading down -1.45% at 1.80378 GBP/AUD.
The Pound Sterling to Euro exchange rate is trading down -0.62% at 1.19890 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.75% at 1.63701 GBP/USD.
The Euro to Australian Dollar exchange rate is trading down -0.84% at 1.50453 EUR/AUD.
The Euro to Pound Sterling exchange rate is trading up +0.62% at 0.83410 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.13% at 1.36543 EUR/USD.

The Australian Dollar to Pound Sterling exchange rate is trading up +1.48% at 0.55439 AUD/GBP.
The Australian Dollar to Euro exchange rate is trading up +0.85% at 0.66466 AUD/EUR.
The Australian Dollar to US Dollar exchange rate is trading up +0.71% at 0.90755 AUD/USD.

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