Exchange Rate Forecasts: Pound Sterling (GBP), Euro (EUR), US Dollar (USD) and Australian Dollar (AUD) Exchange Rate Predictions 2014 / 2015

Currency News UK presents our latest Exchange Rate Forecasts 2014 / 2015 for the following currencies: Pound Sterling, Euro, US Dollar and the Australian Dollar - The International Monetary Fund’s advice to the UK administration that the POUND STERLING (currency:GBP) is overvalued by between 5 and 10% has held back the British tender this week.

Yesterday’s confirmation from Bank of England Deputy Governor Ben Broadbent that Sterling is ‘very likely’ overvalued by 10% added to this dissipating positive sentiment towards the Pound.

Sterling is now forecast to trade with a NEUTRAL bias moving forward.

The weekend foreign exchange markets take the following shape for the three key currencies in this report:

- The pound to australian dollar exchange rate is 1.80627. The last week saw the low of 1.8056 and peaked at 1.8165.
- The pound to euro exchange rate is 1.25251. Over the last seven days, we saw a low of 1.2525 and a high of 1.2642.
- The pound to dollar exchange rate is 1.68218. Again, last 7-day range shows a low of 1.6822 and top rate of 1.6982.

Please Note: these are inter-bank forex rates to which margins are applied when transferring money abroad - speak to a recommended FX provider to lock in the best exchange rates.

Our report continues with focus on the Aus Dollar, Euro and US Dollar:

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A marginally better than forecast PMI survey of China’s vast manufacturing sector, published overnight, has favoured the AUSTRALIAN DOLLAR.

The official government gauge of activity provided grounds for encouragement that the apparent improvement in the world’s second largest economy may be setting in.

Such a development would favour the export-driven Aussie. Expect the Reserve Bank of Australia to indulge in another bout of Australian Dollar-bashing on Tuesday morning when it makes its latest policy announcement.

The RBA’s unfettered desire for a weaker local tender means that the outlook for the Aussie is now NEUTRAL TO NEGATIVE. The Pound to Australian Dollar exchange rate stands at 1.8063 GBP/AUD.

The EURO (currency:EUR) has made a comeback against the Pound during the past 24hrs, sending the Pound to euro exchange rate down to as low as 1.2537 GBP/EUR earlier today.

Yesterday’s better than anticipated German unemployment data helped the single currency, as did the news later the same day that the overall level of eurozone unemployment had also edged downwards.

However, a lower than anticipated print from the most recent euroland CPI inflation data is likely to severely weigh down the euro moving forward. The euro rate forecast is now NEUTRAL TO NEGATIVE.

The US DOLLAR (currency:USD) suffered a pronounced kick in the teeth earlier today when July’s Non-Farm Payrolls data was published.

The key gauge of job creation in the States printed well below expectations at 209,000, however it was the surprise increase in the overall unemployment figure from 6.1% to 6.2% which really hurt the Greenback.

The upshot is likely to see the Federal Reserve ease back its talk of a tightening of domestic monetary policy, for the time-being at least.

The suggestion that a Fed interest rate hike might be a long way off yet could stem the gains which the Buck has enjoyed over the past two weeks; expect the US Dollar forecast to trade on a NEUTRAL footing in the short term.

The current Pound to Dollar exchange rate is 1.6846 GBP/USD.

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