Pound to Australian Dollar (GBP/AUD) & New Zealand Dollar (GBP/NZD) Exchange Rates Forecast To Trade Up

Modified: Friday, 14 March 2014 19:19 BST - Written by David Woodsmith

STORY LINK Pound to Australian Dollar (GBP/AUD) & New Zealand Dollar (GBP/NZD) Exchange Rates Forecast To Trade Up

The Pound Australian Dollar exchange rate and Pound New Zealand Dollar exchange rate have both registered good gains against Sterling during the past seven days following strong Aussie job creation figures and an interest rate hike from the Reserve Bank of New Zealand earlier this week. However, the continued downshift in equities markets and the uneasy situation in Crimea, alongside an expected bout of profit-taking from speculators means that the GBP AUD and GBP NZD exchange rates are forecast to trade on a neutral to positive footing moving forward.

London’s benchmark FTSE 100 index has endured its sixth consecutive session of losses today as investors steered clear of risk over fears that the situation in Ukraine has the near-term potential to deteriorate. The flight to quality caused the index of the 100 leading London shares, (as measured by market capitalisation), to dip down to close to the 6,500 threshold and there could be further losses to come if Sunday’s referendum on independence in Crimea injects further uncertainty into the tinderbox situation. The key element in deciding the future of the disputed region is the West’s reaction to the outcome of the popular vote, which now looks nearly certain to take place.

Risk appetite took a further hit this afternoon with the publication of the latest University of Michigan Confidence index in the US which printed at 79.9 – well below the consensus expectation of 82.0 from analysts. The relatively poor showing from the closely-watched sentiment gauge in the vast American economy suggests that the US Federal Reserve may be willing to persevere with its controversial Quantitative Easing policy into the medium term. In truth, market participants have not required much persuasion that the Fed wants QE to continue since one of its key architects, Janet Yellen, took over as Chairman of the US central bank. The weak US data has seen the Greenback well-supported so far this afternoon, with the Pound Dollar exchange rate holding just above the 1.6600 level GBP/USD.

Important Pound Sterling, Australian & NZ Dollar Exchange Rates (As of: 15:30 GMT 14/03/2014)

The Pound Sterling to Australian Dollar exchange rate is trading down -0.04% at 1.84044 GBP/AUD.
The Pound Sterling to New Zealand Dollar exchange rate is trading down -0.03% at 1.94626 GBP/NZD.
The Euro to Australian Dollar exchange rate is trading up +0.31% at 1.54058 EUR/AUD.
The Euro to New Zealand Dollar exchange rate is trading up +0.32% at 1.62916 EUR/NZD.
The US Dollar to Australian Dollar exchange rate is trading up +0.01% at 1.10781 USD/AUD.
The US Dollar to New Zealand Dollar exchange rate is trading up +0.02% at 1.17150 USD/NZD.
The Australian Dollar to New Zealand Dollar exchange rate is trading up +0.01% at 1.05750 AUD/NZD.
The Australian Dollar to Pound Sterling exchange rate is trading up +0.04% at 0.54335 AUD/GBP.

The New Zealand Dollar to Australian Dollar exchange rate is trading down -0.01% at 0.94563 NZD/AUD.
The New Zealand Dollar to Pound Sterling exchange rate is trading up +0.03% at 0.51381 NZD/GBP.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts