Pound Sterling , Euro, US Dollar & Aus Dollar - Exchange Rate Forecasts, Predictions and Currency Rates Outlook

Modified: Thursday, 4 September 2014 20:52 BST - Written by John Cameron

STORY LINK Pound Sterling , Euro, US Dollar & Aus Dollar - Exchange Rate Forecasts, Predictions and Currency Rates Outlook

Our leading currency exchange rate analyst sets out his prediction for the euro (currency:EUR) and Pound Sterling (currency:GBP) rates. He also provides his forecast for the US Dollar (currency:USD) and Australian Dollar (currency:AUD).

The EURO (currency:EUR) bullied the Pound during yesterday’s trading session in spite of shock Swiss Gross Domestic Product data which revealed that there was no growth in the Alpine economy during the three months to the end of June. Decreased demand from the eurozone economy was blamed for the figure; the single currency may endure renewed selling pressure today as market participants price-in a high percentage chance that ECB Chief Mario Draghi will indicate that Quantitative Easing is on its way for the euroland economy.

The euro exchange rate forecast remains NEGATIVE.

- The Euro to Australian Dollar exchange rate is trading down -0.47% at 1.40895 EUR/AUD.
- The Euro to Pound Sterling exchange rate is trading down -0.04% at 0.79706 EUR/GBP.
- The Euro to US Dollar exchange rate is trading up +0.03% at 1.31346 EUR/USD.

The POUND STERLING (currency:GBP) lost ground against the other major global currencies during yesterday’s session in spite of the publication of the latest PMI survey of Britain’s construction sector which revealed that activity levels in the UK’s building firms had expanded at its fastest pace since the turn of the year. The Pound remained anchored by increased fears from investors that Scotland may be about to vote for a clean break from the UK.

The forecast for Pound Sterling is NEUTRAL TO POSITIVE.

- The Pound Sterling to Australian Dollar exchange rate is trading down -0.43% at 1.76770 GBP/AUD.
- The Pound Sterling to Euro exchange rate is trading up +0.04% at 1.25462 GBP/EUR.

- The Pound Sterling to US Dollar exchange rate is trading up +0.07% at 1.64789 GBP/USD.

The AUSTRALIAN DOLLAR (currency:AUD) leaked support during early trading yesterday as the Reserve Bank of Australia announced that it would be maintaining its key lending rate at 2.5% for another month. The accompanying statement from the RBA suggested that it may be some time before another interest rate hike, observing that, ‘continued accommodative monetary policy should provide support to demand and help growth to strengthen over time’. The Aussie has performed well over the past two months, but...

The outlook for the Australian Dollar exchange rate is now NEUTRAL TO NEGATIVE.

The US DOLLAR (currency:USD) made a concerted comeback against Sterling yesterday, sending then GBP USD exchange rate down to an intraday low of 1.6497. A far stronger than anticipated showing from August’s edition of the closely-monitored ISM Manufacturing survey in the States caused investors to increase their bets that a tightening of monetary policy might be on its way from the Federal Reserve.

In the meantime, the US Dollar exchange rate forecast is NEUTRAL TO POSITIVE.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts