Pound Australian Dollar Exchange Rate Forecast; Gains Predicted For GBP Sterling to Euro Exchange Rate

June 3, 2014 - Written by John Cameron

STORY LINK Pound Australian Dollar Exchange Rate Forecast; Gains Predicted For GBP Sterling to Euro Exchange Rate

Worse than expected Australian retail sales data and a relatively weak Chinese manufacturing survey should have held back the Australian Dollar (currency:AUD) during the overnight session. However, the Australian Pound exchange rate climbed during the Asian session, with GBP AUD dipping to as low as 1.8044 overnight.

The Pound Sterling to Australian Dollar exchange rate is trading down -0.18% at 1.80951 GBP/AUD.

Support for the Australian unit was driven by commentary from the Reserve Bank of Australia which followed its announcement that it was maintaining its key lending rate at 2.50% for the tenth month on the trot. RBA Governor Glenn Stevens noted in his statement that ‘the earlier decline in the exchange rate is assisting in achieving balanced growth in the economy’, hinting that the Antipodean nation’s policymakers are now less concerned about the relative strength of the Aussie following its decline of the past twelve months which saw the GBP AUD exchange rate rise from the 1.4400s briefly up into the 1.9000s during the early part of this year.

Stevens once again suggested that he had spotted encouraging signs that the Australian economy was becoming more balanced, with inward investment into the nation’s mining and extraction sectors dropping off and being replaced with non-mining structural spending. Analysts forecast that the commentary is likely to see the Aussie strengthen against Sterling moving forward.

Pound to Euro exchange rate drops in response to Eurozone CPI

Elsewhere whole of eurozone Consumer Price Index data for last month, published earlier, came out at a below-expectations annualised 0.5%, stoking fears that the euroland’s economy may be set for a decimating bout of deflation. However, the disappointing European inflation figures were more than offset by official data which pointed to an unexpected drop in the overall level of eurozone unemployment from 11.8% to 11.7% in April.

The Pound euro exchange rate dropped to as low as 1.2267 GBP/EUR in response, but today’s losses are by no means guaranteed to stick if the European Central Bank eases its monetary policy on Thursday’s losses are by no means guaranteed to stick if the European Central Bank eases its monetary policy on Thursday.

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TAGS: Australian Dollar Forecasts Euro Forecasts Euro Pound Forecasts Pound Austral Forecasts