Today's Exchange Rates - Pound to Dollar (GBP/USD), Australian Dollar (GBP/AUD), Canadian Dollar (CAD) & NZ Dollar (NZD)

Modified: Wednesday, 25 June 2014 19:51 BST - Written by John Cameron

STORY LINK Today's Exchange Rates - Pound to Dollar (GBP/USD), Australian Dollar (GBP/AUD), Canadian Dollar (CAD) & NZ Dollar (NZD)

Exchange Rates Today - The high-yielding currencies such as the Australian dollar, New Zealand dollar (NZD) and Canadian dollar (CAD) have seen a boost early this week as data from China came in better than forecast. The markit Manufacturing Purchasing managers Index improved for June in comparison to May.

The AUD saw a further boost as Consumer Confidence data rose 6 per cent over the last four weeks.

On Tuesday the forex exchange takes the following positions:

- The pound to dollar exchange rate is -0.07 per cent lower at 1.69680 GBP/USD.
- The euro to pound exchange rate is +0.1 per cent higher at 0.80207 EUR/GBP.

Australian Dollar Exchange Rate Forecast - Iraq could trigger downward movement in global equities markets

Reports from the war-torn Middle Eastern state suggest that Sunni rebels including Islamic State in Iraq and the Levant (ISIS) combatants have captured two key border crossings linking Western Iraq with Syria and Jordan.

The news backs up weekend commentary from military experts who consider it unlikely that the Iraqi government’s fledgling security services will be able to contain the recent surge by hardline ISIS fighters.

The upshot may well see Iraq descend into lawlessness, increasing calls for the West’s superpowers to intervene.


Such an outcome would be almost certain to send the closely-monitored VIX index, which measures levels of volatility and fear amongst market participants, sharply higher, potentially triggering a much-trailed downward movement in global equities markets.

Pound to New Zealand & Australian Dollars

The Australian, New Zealand and Canadian Dollars have strengthened against many of the other major currencies in recent weeks, however the threat of further unrest in Iraq could bring a dramatic halt to such a move.

A flight to safety from market participants would be likely to send the Pound Australian Dollar exchange rate (GBP/AUD) up towards the 1.9000 threshold which it briefly breached during January / February of this year.

Meanwhile, a loss of confidence from market participants would be likely to send the Pound New Zealand Dollar exchange rate (GBP/NZD) up through the two to one level once more. Similarly the Pound Sterling Canadian Dollar exchange rate would be likely to make a fresh run at levels above 1.8600 GBP/CAD.

Dollar rate forecast - US data could send higher

Looking ahead, highlights for this week’s session come in the form of Gross Domestic Product growth numbers from the US on Wednesday and from the UK on Friday.

A poor showing from the American numbers and another encouraging British print would be likely to send the Pound Sterling US Dollar exchange rate up into the mid-1.7000s GBP/USD.

The pair broke to a fresh 5+ year high at the end of last week’s session, so there would appear to be little stopping further near-term gains if the fundamentals gave the pair a push in the right direction.

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