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

Modified: Monday, 27 January 2014 08:55 BST - Written by John Cameron

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

Downbeat comments from Bank of England Governor Mark Carney at the end of last week ensured that the POUND STERLING exchange rate (currency:GBP) headed for the weekend market shutdown in lacklustre form. The Pound had been well-bid earlier in the week following strong UK employment figures, but Carney’s assertion that any further decreases in the level of domestic unemployment might not necessarily precipitate interest rate hikes from the BoE are likely to hold back the Pound in the short to medium term. The outlook for Pound Sterling is NEUTRAL TO NEGATIVE.

The EURO to Pound exchange rate (currency:EUR/GBP) slumped to its lowest level for over a year last Thursday, but managed to claw-back almost 2c before Friday’s market close. Comments from ECB President Mario Draghi noting the ‘dramatic improvement’ in the eurozone’s economy over the past two years helped the single currency following the disappointment of a weak German ZEW survey earlier in the week. The euro is forecast to trade with a NEUTRAL TO POSITIVE bias as we head towards Thursday’s German unemployment and inflation numbers.

Pound Sterling struck its highest level against the AUSTRALIAN DOLLAR (currency:AUD) since September 2009 during trading on Friday. However the break above the 1.9000 GBP/AUD threshold proved to be ephemeral and Pound Australian Dollar exchange rate ended the week back in the 1.8900s GBP/AUD. A surprisingly poor set of Chinese manufacturing data, which revealed that this key sector of the second largest economy is now shrinking, hurt the Aussie badly, but in truth its losses could have been significantly worse were it not for a higher than anticipated set of Australian inflation figures, published on Wednesday. The outlook for the Australian tender remains NEGATIVE.

The US DOLLAR (currency:USD) made a concerted comeback against the Pound Sterling during the last session of last week, sending the Pound Dollar exchange rate tumbling from close to 1.6700 GBP/USD during early trading back down into the 1.6400s GBP/USD late on. The worst week for US stocks since 2012 helped drive support for the safe-haven Greenback and the net-long positions of currency market speculators on the Buck now stand at the highest level since the end of July 2013. The US tender is forecast to trade with a NEUTRAL TO POSITIVE bias moving forward.

Important Australian Dollar, Euro, Pound & US Dollar Exchange Rates (Publish: 09:00 GMT 27/01/2014)

The Pound Sterling to Australian Dollar exchange rate is trading down -0.13% at 1.89441 GBP/AUD.
The Pound Sterling to Euro exchange rate is trading up +0.08% at 1.20594 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading up +0.12% at 1.65130 GBP/USD.
The Euro to Australian Dollar exchange rate is trading down -0.21% at 1.57090 EUR/AUD.
The Euro to Pound Sterling exchange rate is trading down -0.08% at 0.82923 EUR/GBP.
The Euro to US Dollar exchange rate is trading up +0.05% at 1.36930 EUR/USD.

The US Dollar to Australian Dollar exchange rate is trading down -0.25% at 1.14723 USD/AUD.
The US Dollar to Euro exchange rate is trading down -0.05% at 0.73030 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading down -0.12% at 0.60559 USD/GBP.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts