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

Modified: Wednesday, 5 March 2014 17:18 BST - Written by John Cameron

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

The POUND STERLING (currency:GBP) struggled to stamp its authority against the other major global currencies during yesterday’s trading session following the publication of a disappointing UK PMI Construction sector survey. The figures revealed that the pace of growth in the British building industry slowed last month and the UK tender suffered as a consequence. The Pound Sterling forecast is to trade on a NEUTRAL TO NEGATIVE footing in the short term.

The EURO (currency:EUR) firmed against the Pound and most of the other major currencies during yesterday’s trading session, sending the Pound euro exchange rate down to close to the 1.2100 GBP/EUR level at one point. The single currency benefitted from a calming of the situation in the Ukraine and the continued positive sentiment which last week’s higher than anticipated eurozone inflation data engendered. The Euro exchange rate forecast is now NEUTRAL TO POSITIVE.

The US DOLLAR (currency:USD) hoovered up safe haven support during the early part of this week, but the flow of funds into US treasury bills halted yesterday afternoon as global stocks began to sharply move forward once more. The positive effect on the Greenback of Monday’s relatively strong ISM Manufacturing survey in the States also wore off as the day progressed, sending the Pound Dollar exchange rate up to the higher reaches of the 1.6600 – 1.6700 GBP/USD region once more. The US Dollar forecast is to trade with a NEUTRAL bias moving forward.

The Reserve Bank of Australia’s maintenance of its neutral policy rhetoric in Monday night’s policy announcement helped the AUSTRALIAN DOLLAR (currency:AUD) climb against the Pound, briefly sending the Pound Australian Dollar exchange rate down into the 1.8500s GBP/AUD. Sunday night’s improved survey of China’s combined Non-Manufacturing industries continues to assist the Aussie, but any escalation of events in Southern Ukraine has the potential to reverse the Australian tender’s gains. The Australian Dollar exchange rate forecast is to trade on a NEUTRAL footing moving forward.

Important Pound Sterling, Euro, US Dollar & Australian Dollar Exchange Rates (Publish: 11:00 GMT 05/03/2014)

The Pound Sterling to Australian Dollar exchange rate is trading down -0.12% at 1.85826 GBP/AUD.
The Pound Sterling to Euro exchange rate is trading up +0.25% at 1.21591 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading up +0.09% at 1.66804 GBP/USD.
The Euro to Australian Dollar exchange rate is trading down -0.38% at 1.52829 EUR/AUD.
The Euro to Pound Sterling exchange rate is trading down -0.25% at 0.82243 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.17% at 1.37185 EUR/USD.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts