Exchange Rate Forecasts - Pound to Euro to Rise, Pound to Australian (AUD) and NZ Dollar to Drop

Modified: Friday, 5 September 2014 11:26 BST - Written by John Cameron

STORY LINK Exchange Rate Forecasts - Pound to Euro to Rise, Pound to Australian (AUD) and NZ Dollar to Drop

Analysts forecasted the potential for upside for the British Pound to euro exchange rate if the European Central Bank announce Quantitative Easing. Meanwhile, predictions are for GBP NZD and GBP AUD to drop following news from Ukraine.

Global share markets have shot forward once again during trading today, with the benchmark S&P 500 Index in the States climbing to a fresh all-time high of close to the 2,010 threshold during New York’s morning session. Meanwhile, the London’s FTSE 100 had gained the best part of 1.0% during the middle part of the trading day.

Here's some updated (05/09/2014 11:20 GMT) forex rates today:

- The Pound Sterling to Australian Dollar exchange rate is trading down -0.2% at 1.74212 GBP/AUD.
- The Pound Sterling to Canadian Dollar exchange rate is trading up +0.08% at 1.77529 GBP/CAD.
- The Pound Sterling to Euro exchange rate is trading down -0.07% at 1.25914 GBP/EUR.
- The Pound Sterling to New Zealand Dollar exchange rate is trading down -0.14% at 1.96646 GBP/NZD.
- The Pound Sterling to Lira exchange rate is trading up +0.35% at 3.53779 GBP/TRY.
- The Pound Sterling to Dollar exchange rate is trading up +0.15% at 1.63179 GBP/USD.

Apparently constructive news from Ukraine had triggered the improvement in investor sentiment, with Russian President Vladimir Putin stating earlier today that he expects a peace agreement to be reached between the Kiev administration and pro-Russian separatists by the end of the week. The development which represented a marked departure from Putin’s comments of the early part of the week which saw him observe that Ukraine was ‘not interested’ in peace. The European Union have set Friday as the final day for Russia to order a ceasefire and avoid a deepening of the existing sanctions against his nation. The deadline appears to be having its desired effect, up to this point at least.

The encouraging news from Eastern Europe has seen the risk-driven Commodity Dollars fare well on the day, with the Pound Sterling Australian Dollar exchange rate drop to a fresh 9 ½ -month low of 1.7597 GBP/AUD earlier on. Meanwhile, the Pound New Zealand Dollar exchange rate slide to 1.9760 GBP NZD as Sterling continued to suffer following the shock Scottish referendum opinion poll result of yesterday.


In spite of the disappointing showing from the Pound, it has been a generally positive day for UK data releases. The latest Markit/CIPS Purchasing Manager Index survey of the British services sector printed at a higher than anticipated level, pointing to the fastest pace of growth for the combined UK tertiary sector for nearly a year. The good news was compounded by a missive from the Office for National Statistics which upwardly revised its estimate for Gross Domestic Product during the 2008 – 2010 period, when the domestic economy was struggling to avoid sliding into a fully-blown recession.

Looking ahead, tomorrow afternoon’s Bank of England monetary policy announcement is unlikely to be market moving; however the European Central Bank’s policy announcement which follows at 12545hrs BST could be. Any revelation that the ECB will be instigating its own version of Quantitative Easing for mainland Europe is almost certain to send the Pound Sterling euro exchange rate up to its range-topping rate of 1.2897.

Other Pound Sterling Exchange Rates Today - 4th September 2014

The Pound to Chinese Yuan exchange rate is trading down -0.07% at 10.10089 GBP/CNY.
The Pound to Hong Kong Dollar exchange rate is trading down -0.03% at 12.75309 GBP/HKD.
The Pound to Norwegian Krone exchange rate is trading down -0.12% at 10.22601 GBP/NOK.
The Pound to Swedish Krona exchange rate is trading down -0.1% at 11.52136 GBP/SEK.
The Pound to Singapore Dollar exchange rate is trading down -0.05% at 2.05929 GBP/SGD.
The Pound to Lira exchange rate is trading down -0.05% at 3.55241 GBP/TRY.
The Pound to Rand exchange rate is trading down -0.1% at 17.56072 GBP/ZAR.

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TAGS: Australian Dollar Forecasts Currency Predictions Euro Forecasts Eur Forecasts