Pound, Euro & Australian Dollar: GBP/AUD and GBP/EUR Exchange Rates Continue to fall Today

November 4, 2014 - Written by John Cameron

STORY LINK Pound, Euro & Australian Dollar: GBP/AUD and GBP/EUR Exchange Rates Continue to fall Today

The Pound Sterling (GBP) has put in a poor performance against the other sixteen most actively traded global currencies during Tuesday’s session. Support for the UK currency has been so flaky that both the euro (currency:EUR) and the Aus Dollar (AUD) have managed to record gains versus Sterling in spite of worrying data releases.

We take a look at the GBP to EUR and AUD outlook and provide insight into their forecasted direction in the near-term.

Pound to Euro Rate Today: GBP/EUR Trades Down Despite EC Forecast

By the latter part of the day’s London equities session, the Pound euro exchange rate was trading down by 0.40% on the day at 1.2740 GBP EUR.

The pair had convincingly broken through the 1.2800 threshold during trading yesterday, but even a dismal economic forecast, published by the European Commission (EC) earlier, was not enough to see the pair break to new highs.

The EC estimated earlier this year that the euroland economy was set to expand by 1.2% during 2014, but today’s missive saw the official prediction cut to a lowly 0.8%.

Meanwhile, the EC also trimmed its 2015 GDP growth forecast from an annualised 1.7% all the way down to 1.1%.

Is QE On The Way For The Eurozone?

The outlook for the euro now appears extremely negative; however today’s forecasts were so bad that the European Central Bank’s hand now appears to be forced with regard to a fully-blown bout of Quantitative Easing.

Analysts suggest that the euro area’s reserve bank will have to begin buying-up sovereign debt this side of Christmas.

Expect the eurozone’s bourses to record strong gains as a result and the single currency to experience hefty losses as a consequence.

Poor Australian Trade Data Fails To Hold Back The Aus Dollar Rate

Meanwhile, last night’s Asian session also brought the release of official September Trade Balance data in Australia.

The figures came out significantly worse than had been anticipated, with a total trade deficit for the month of AUD2.261bn versus an expected showing of AUD1.850bn.

The numbers show that Australia’s trade gap m more than doubled during September compared to the previous month’s result and the fact that the level of exports had increased by only 1% during this time provided cause for concern regarding the strength of the economic recovery in the Asia Pacific region.

GBP AUD Exchange Rate Forecast Higher

In spite of the highly disappointing number, the Pound Sterling Australian Dollar exchange rate was trading down by as much as 0.50% on the day, touching 1.8287 earlier.

However, analysts forecast that there could be renewed gains to come for GBP AUD sooner rather than later.

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: Australian Dollar Forecasts Currency Predictions Euro Forecasts Eur Forecasts