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

Modified: Monday, 3 February 2014 14:55 BST - Written by Frank Davies

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

The POUND STERLING (currency:GBP) has endured a dismal start to the week, leaking support against all of the other sixteen most-actively traded global currencies. The move against the UK tender was partly driven by this morning’s Purchasing Manager Index survey which showed that the rate of increase in activity levels in the manufacturing sector of Britain’s economy is cooling. The forecast for Sterling is now NEUTRAL TO NEGATIVE.

The EURO (currency:EUR) has picked up support against the Pound during early trading this week, propelling the Euro Pound exchange rate (EUR/GBP) up to as high as 0.8085 EUR/GBP earlier. However, the prevailing trend for Pound Euro exchange rate forecast remains to the upside and Thursday’s post-European Central Bank policy announcement press conference could cause the pair to re-establish its forward momentum. Investors are likely to be wary of holding euro-denominated assets in the lead-up to this key risk event, so the outlook for the single currency is NEUTRAL TO NEGATIVE.

The US DOLLAR (currency:USD) has surged ahead against the Pound Sterling today, sending the Pound Dollar exchange rate down to 1.6319 GBP/USD earlier on. The renewed support for the Buck has coincided with a downward movement in global stocks, suggesting that the Greenback has not yet lost its status as the world’s premier safe haven currency. A strong showing from this afternoon’s ISM Manufacturing survey could provide further support for the Dollar, which is now predicted to trade with a NEUTRAL TO POSITIVE bias moving forward.

The AUSTRALIAN DOLLAR (currency:AUD) has firmed against Pound Sterling on the day in spite of fears that the latest Reserve Bank of Australia policy announcement in the early hours of tomorrow morning could be followed by further comments confirming a strong desire for a weaker Aussie. Given this clear and present danger, the Australian unit is expected to trade on a NEUTRAL TO NEGATIVE footing in the short term and a move back up towards the 1.9000 GBP/AUD threshold cannot be ruled out for the Pound Australian Dollar exchange rate.

Key Pound Sterling, Euro, Australian Dollar & US Dollar Exchange Rates (As of: 15:00 GMT 03/02/2014)

The Pound Sterling to Australian Dollar exchange rate is trading down -1% at 1.85868 GBP/AUD.
The Pound Sterling to Euro exchange rate is trading down -0.56% at 1.21184 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.56% at 1.63450 GBP/USD.
The Euro to Australian Dollar exchange rate is trading down -0.44% at 1.53377 EUR/AUD.
The Euro to Pound Sterling exchange rate is trading up +0.56% at 0.82519 EUR/GBP.
The Euro to US Dollar exchange rate is trading up +0% at 1.34878 EUR/USD.

The US Dollar to Australian Dollar exchange rate is trading down -0.45% at 1.13716 USD/AUD.
The US Dollar to Euro exchange rate is trading down -0% at 0.74141 USD/EUR.
The US Dollar to Pound Sterling exchange rate is trading up +0.56% at 0.61181 USD/GBP.
The Australian Dollar to Euro exchange rate is trading up +0.45% at 0.65199 AUD/EUR.
The Australian Dollar to Pound Sterling exchange rate is trading up +1.01% at 0.53802 AUD/GBP.
The Australian Dollar to US Dollar exchange rate is trading up +0.45% at 0.87939 AUD/USD.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts