Exchange Rate Forecasts: Pound Sterling, Australian Dollar, Euro & US Dolllar (GBP EUR AUS USD)

April 4, 2014 - Written by Tim Boyer

STORY LINK Exchange Rate Forecasts: Pound Sterling, Australian Dollar, Euro & US Dolllar (GBP EUR AUS USD)

The POUND STERLING (currency:GBP)traded on an even keel during yesterday’s session, with other currencies, and in particular the euro, hogging the limelight. The March editions of PMI surveys of the whole UK economy and its services sector both disappointed, and with no further data of significance due for publication in Britain this week Sterling may struggle today. The nagging fear still remains that the Bank of England would welcome a weaker Pound, meaning that the Pound Sterling forecast to trade with a NEUTRAL bias moving forward.

The EURO’s (currency:EUR) near-term prospects took a severe hit yesterday afternoon following comments from European Central Bank President Mario Draghi. Confirmation from the top man at the ECB that his policy committee is unanimously in favour of considering a version of Quantitative Easing for the eurozone threatens to weigh down the single currency during coming months. The euro forecast is to trade on a NEUTRAL TO NEGATIVE footing moving forward. The Pound Euro exchange rate currently stands at 1.2092 GBP/EUR.

The AUSTRALIAN DOLLAR (currency:AUD) has once again pushed ahead against the Pound during the past 24hrs. The Aussie has been improving against Sterling since the Reserve Bank of Australia changed to a more neutral policy bias two months ago. Yesterday’s support for the Aussie was driven by yesterday morning’s domestic Trade Balance numbers for February which revealed a massive AUD1.2bn trade surplus. With the Aussie economy performing like this, the Australian Dollar forecast to trade on a NEUTRAL TO POSITIVE footing moving forward. The Pound Australian Dollar exchange rate stands at 1.7982 GBP/AUD.

The US DOLLAR (currency:USD) climbed against Sterling yesterday, causing the Pound Dollar exchange rate to peel back to as low as 1.6571 on the session. The Buck was supported in spite of disappointing Initial Jobless Claims numbers and February Trade Balance figures out yesterday. Because of this, it’s likely that the support for the Greenback on the day was caused by investors repositioning their portfolios ahead of this afternoon’s key American labour market data. The US Dollar forecast is now NEUTRAL TO NEGATIVE.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts