Foreign Exchange Rates - Pound to Dollar (GBP/USD), Euro (EUR) and Australian Dollar (AUD)

July 3, 2014 - Written by John Cameron

STORY LINK Foreign Exchange Rates - Pound to Dollar (GBP/USD), Euro (EUR) and Australian Dollar (AUD)

Foreign Exchange Rates - Pound Sterling to Euro, US and Australian Dollars The POUND STERLING (currency:GBP) put in another strong performance on the day yesterday.

For the second session on the trot, data from the UK thrashed expectations, sending Sterling higher against almost all of the other sixteen most actively traded global currencies.

Tuesday’s positive UK manufacturing survey results were still fresh in the minds of global investors when the latest PMI survey of Britain’s construction sector was published yesterday morning.

A showing of 62.6 versus an expected 59.8 buoyed the Pound. Sterling is now forecast to trade on a NEUTRAL TO POSITIVE footing in the short term.

Forecast for Euro is Negative:

The EURO (currency:EUR) shipped support in the global currency markets yesterday following the publication of regional data which revealed that producer prices had shown a second successive monthly contraction.

The figure, considered a key leading indicator for future levels of inflation, (or deflation), suggests that the European Central Bank’s raft of measures aimed at increasing the rate of price rises in the euroland is failing to have the desired effect. Expect further euro-negative commentary from the ECB later today, meaning that the euro forecast NEGATIVE. The current Pound to Euro exchange rate stands at 1.2570 GBP/EUR.

US Dollar Rate Forecast is Negative:

The US DOLLAR (currency:USD) remained friendless in the markets yesterday, sending the Pound Sterling US Dollar exchange rate up to close to the 1.7200 threshold during the middle part of the European equities session. Low levels of market volatility, as evidenced by a historically low reading for the $VIX fear index during recent weeks, hints at complacency amongst market participants – a factor which hampers the Greenback.

This month’s US Non-Farm Payrolls data is due for release this afternoon – it appears questionable whether even a strong showing from this closely-monitored number will be enough to turn around the Buck’s fortunes.

Analysts predict that the Dollar forecast is NEUTRAL TO NEGATIVE bias moving forward.

Australian Dollar Exchange Rate Outlook:

The AUSTRALIAN DOLLAR (currency:AUD) gave up ground against the Pound Sterling during yesterday’s session following the publication of a disappointing set of local import / export figures which revealed that the Antipodean economy had posted a second successive monthly trade gap.

The downside for the Aussie was mitigated by firmer commodity prices and the recent improvement in the tone of data emanating from China; as Steven Daghlian of Commsec stated yesterday, ‘good news out of China is good news for investors.’ The forecast for the Aussie is NEUTRAL TO POSITIVE and the current GBP AUD exchange rate stands at 1.7152.

Updated Pound Sterling Exchange Rate Levels - Updated 04/07/2014

The Pound Sterling to Australian Dollar exchange rate is trading down -0.11% at 1.83293 GBP/AUD.
The Pound Sterling to Canadian Dollar exchange rate is trading down -0.06% at 1.82342 GBP/CAD.
The Pound Sterling to Euro exchange rate is trading up +0.1% at 1.26156 GBP/EUR.
The Pound Sterling to Swedish Krona exchange rate is trading up +0.22% at 11.73859 GBP/SEK.
The Pound Sterling to US Dollar exchange rate is trading down -0.05% at 1.71435 GBP/USD.
The Pound Sterling to South African Rand exchange rate is trading down -0% at 18.43578 GBP/ZAR.

For more currency exchange forecasts or to get some assistance relating to business money transfers or international payments online, John Cameron, our resident FX expert will be more than happy to provide free help.

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.

TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts