Pound Sterling Forecast 2014: GBP to Australian Dollar (AUD), New Zealand Dollar (NZD) & Canadian Dollar (CAD) Exchange Rates

June 8, 2014 - Written by John Cameron

STORY LINK Pound Sterling Forecast 2014: GBP to Australian Dollar (AUD), New Zealand Dollar (NZD) & Canadian Dollar (CAD) Exchange Rates

The Pound Sterling forecast for the Australian Dollar, New Zealand & Canadian Dollar exchange rates are predicted to see gains as VIX remains low. The global currency market may have been shut on Sunday but that didn’t stop a key piece of data from one of the world’s premier economic powerhouses being published.

On Tuesday we see the following Pound exchange rates:

• The Pound to Euro exchange rate today is trading steady just 0.01% per cent higher at 1.23628 GBP/EUR.
• The Pound Sterling to Australian Dollar exchange rate is trading down -0.27% at 1.79352 GBP/AUD.
• The British Pound to Dollar exchange rate is trading down -0.02% at 1.67990 GBP/USD.
• The Pound Sterling to Canadian Dollar rate today is trading down -0.08% at 1.83116 GBP/CAD.
• The Pound Sterling to New Zealand Dollar rate is trading down -0.27% at 1.97287 GBP/NZD.

Sterling to AUD/NZD/CAD Dollars forecasted movement on Chinese data

Global risk appetite remains relatively buoyant in spite of continued fears of a potential bout of deflation in the eurozone economy and concerns that the situation in Ukraine could deteriorate at a moment’s notice; however Sunday’s Chinese trade numbers for last month could trigger a near-term flight to safety from investors. Although the numbers showed a larger than anticipated increase in the trade surplus of the world’s second largest economy, the Chinese import figures for May could cause market participants to shun risk as this week’s session gets underway.

Analysts had been expecting a year-on-year increase in the reading for Chinese imports from 0.8% in April to 6.0% last month. The result of -1.6% therefore came as an unpleasant surprise for investors holding the Commodity Dollars and other risk-driven tenders. Expect the release to elicit a forward move for the Pound Australian Dollar (GBP/AUD), Sterling New Zealand Dollar (GBP/NZD) and Pound Canadian Dollar (GBP/CAD) exchange rates as this week’s session gets underway.

The global financial markets have been particularly placid since the turn of the year, with the past three months bringing the lowest reading for the closely-monitored $VIX index, (considered by economists to be a gauge of fear levels in the markets), since 2006-7. Last Friday’s stronger than anticipated US job creation and overall unemployment figures may well add to complacency levels amongst market participants.

Forecasts see Pound to AUS & NZ Dollar exchange rates rise

However, such periods of calm have traditionally preceded lurches in market sentiment similar to the one of 2008. At some stage soon, market participants are likely to take fright once more and the herd mentality which follows will trigger a move out of risk. Analysts forecast that this will be the time when GBP AUD, GBP NZD and GBP CAD exchange rates will rapidly rise once more.

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