Currency Exchange Rate Forecasts / Predictions For Pound Sterling (GBP), Euro (EUR), Dollar (USD) & Australian Dollar (AUD)

Modified: Monday, 19 May 2014 15:47 BST - Written by John Cameron

STORY LINK Currency Exchange Rate Forecasts / Predictions For Pound Sterling (GBP), Euro (EUR), Dollar (USD) & Australian Dollar (AUD)

Currency News UK exchange rate forecasts and predictions for the Pound Sterling (GBP), Euro (EUR), Australian Dollar (AUD) and US Dollar (USD):Recent estimates suggesting that a ‘Brexit’ (a British exit from the European Union) could reduce UK GDP by between 6 and 9% have startled investors holding the POUND STERLING (currency:GBP). The fallout has anchored Sterling so far today and the Bank of England Governor Mark Carney’s weekend suggestion that the British property market is in danger of entering bubble territory has added to the negative sentiment surrounding the Pound. The outlook for the UK tender is now NEUTRAL TO NEGATIVE.

Support for the EURO (currency:EUR) has eased during this morning’s European session in spite of a report from leading credit ratings agency Moody’s that it has improved its outlook for Ireland’s national debt to ‘stable’. A monthly report which shows that the rate of increase in activity levels in the eurozone’s construction sector have dropped off hasn’t helped the single currency. Tomorrow’s German Producer Price data should be closely-monitored; in the meantime the euro is forecast to trade on a NEUTRAL TO NEGATIVE footing. The Pound Euro exchange rate stands at 1.2273 GBP/EUR.

The US DOLLAR (currency:USD) has weakened against Sterling once again today, sending the GB Pound Dollar exchange rate up to as high as 1.6845 GBP/USD as investors push back their forecasts for the timing of the next interest rate hike from the Federal Reserve. The early part of this week is sprinkled with public statements from Fed policymakers but the main event this week comes on Wednesday evening with the publication of the minutes of the latest Fed policy meeting. In the meantime, the Dollar forecast is expected to trade on a NEUTRAL TO NEGATIVE footing.

The AUSTRALIAN DOLLAR (currency:AUD) has weakened against Sterling so far today as global appetite for risk eased. Losses for share markets across the world hinted at a nervousness amongst investors regarding the economic effect of the ongoing situation in Ukraine and the continued evidence pointing to a slowdown in China. Tonight’s Westpac Consumer Confidence survey has the potential to be market-moving, with the Aussie needing a decent showing. Analysts now forecast that the Pound Sterling Australian Dollar exchange rate will trade with a NEUTRAL bias moving forward. The Pound Australian Dollar exchange rate stands at 1.7988 GBP/AUD.

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