Exchange Rates Forecast for Pound, Australian Dollar, Euro and US Dollar

Modified: Monday, 9 February 2015 09:43 BST - Written by John Cameron

STORY LINK Exchange Rates Forecast for Pound, Australian Dollar, Euro and US Dollar

Weekly FX Forecasts for the Pound Sterling to Euro, Australian Dollar and US Dollar Exchange Rates

Major changes in the global market since the turn of the year have made for pronounced price action for many of the sixteen most-actively traded world currencies.

The sharp drop in the price of a barrel of crude oil has brought an alteration in the monetary policies of the export-driven economies including Australia, New Zealand and Canada, who appear to have entered a competitive round of rate cutting, (or at least the suggestion of it, in the case of the Reserve Bank of New Zealand).

We take a look at what lies ahead during the next seven days and how it will affect the global currency markets below -

RBA Rate Cut Hits Australian Dollar Exchange Rate

The Reserve Bank of Australia (RBA) shocked the markets last week by announcing a surprise interest rate cut; the RBA’s key lending rate now stands at a record low of 2.25%.

However, the continued forward move in the price of a barrel of Brent Crude, which saw a 20% increase during the past week alone.

With Australian house prices still on the up and up and in danger of overheating, it would appear likely that the RBA’s rate cut will prove to be a one-off given the likely increase in inflationary pressures during coming months.


The early hours of Thursday morning bring the publication of January’s domestic jobs numbers in Oz and a decent showing from these keynote stats will further decrease the onus on the RBA to further loosen its monetary policy.

The Pound Sterling to Australian Dollar exchange rate will drop as a result.

US Dollar Exchange Rate Forecast is Positive

Elsewhere, Thursday’s session brings the publication of December’s Retail Sales data in the US.

If the figure shows at a stronger than anticipated level, building on Friday’s relatively strong American jobs figures, then look for GBP USD to record renewed losses.

Friday afternoon’s Michigan Sentiment Index will be likely to accentuate any such move, if it pleases investors.

Pound to Euro Exchange Rate Forecast: GBP/EUR Prediction depends on GDP Data

Meanwhile, Friday morning’s German and whole of Eurozone Gross Domestic Product numbers will have a strong bearing on the near-term performance of the euro.

If they suggest that the recent entry by the euroland’s economy into a period of deflation is beginning to dampen economic activity in the region, then the Pound to euro exchange rate will track higher, with analysts forecasting a move through to a fresh 7 ½ year high to be a likely outcome.

Exchange Rates Today

The Pound to Australian Dollar exchange rate today is converting -0.38 per cent lower at 1.95594 GBP/AUD.
The Pound to Canadian Dollar conversion rate is -0.15 pct lower at 1.90500 GBP/CAD.
The Pound to Euro exchange rate converts -0.34 per cent lower at 1 GBP is 1.34245 EUR.
The Pound to New Zealand Dollar exchange rate is -0.83 pct lower with a conversion rate of 1 GBP equals 2.05569 NZD.
The Pound to US Dollar exchange rate is -0.03 pct lower with a conversion rate of 1 GBP equals 1.52347 USD.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Currency Predi Forecasts