British Pound Sterling Exchange Rate Forecast for EUR GBP & Prediction for USD AUD

December 3, 2014 - Written by John Cameron

STORY LINK British Pound Sterling Exchange Rate Forecast for EUR GBP & Prediction for USD AUD

Latest Pound Sterling (currency:GBP) vs Euro (currency:EUR), US Dollar (currency:USD) and the Australian Dollar (currency:AUD) exchange rate forecasts

The EURO (currency:EUR) lost a small amount of ground against Sterling yesterday, propelling the GBP EUR exchange rate up to as high as 1.2639. Tomorrow afternoon’s European Central Bank policy announcement is key to the future prospects of the single currency. The consensus opinion amongst analysts is that there will be no revelation of an expansion of the ECB’s asset purchase scheme to cover sovereign debt. If the ECB does delay all-out QE until the New Year, then the euro may be afforded some respite, but the forecast for the single currency remains NEGATIVE.

UK Construction Data Fails to Harm GBPPound Sterling

The POUND STERLING(currency:GBP) traded with a market neutral bias yesterday. The morning session brought the publication of a distinctly below-par set of UK Construction sector data, but the Pound held steady as other currencies floundered. This morning’s survey of the combined services sector of the British economy could provoke market movement for Sterling, but tomorrow lunchtime’s Bank of England monetary policy announcement is likely to prove to be a damp squib. In the meantime, analysts project that the Pound will trade on a NEUTRAL TO POSITIVE footing.

US Dollar Gains Again

The US DOLLAR (currency:USD) pushed ahead against the Pound Sterling during yesterday’s session following the publication of a stronger than anticipated set of domestic October Construction Spending figures. An upward revision to September’s counterpart figure added to the good news surrounding the Buck. Today’s session brings the release of last month’s Non-Manufacturing ISM survey in the States. A slight improvement is expected from October’s showing of 57.1, so the Greenback is forecast to continue to perform on a NEUTRAL TO POSITIVE bias. GBP USD stands at 1.5641.

Aussie Steady after RBA Comments

The AUSTRALIAN DOLLAR (currency:AUD) held its ground against the other major global currencies during yesterday’s session. The Aussie came under sustained selling pressure during trading last week when a leading Reserve Bank of Australia policymaker suggested that his Bank might have to countenance a trimming of interest rates next year if global commodity prices continued to track lower. There was no mention of such a need in Tuesday night’s RBA policy minutes, which struck a neutral tone, so the Australian unit is forecast to trade on a NEUTRAL footing moving forward. The GBP AUD exchange rate stands at 1.8502.

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