Pound Sterling Australian Dollar GBP AUD Forecast Improves on Positive Share Market Movement

September 8, 2015 - Written by Tim Boyer

STORY LINK Pound Sterling Australian Dollar GBP AUD Forecast Improves on Positive Share Market Movement

Eurozone GDP Supports Euro Exchange Rate Trading: EUR to USD Higher

There was more good news for investors holding euro-denominated assets earlier today with the publication of the second estimate of the euroland Q2 Gross Domestic Product. The initial GDP reading for the eurozone economy showed at an annualised 0.3% and analysts had been expecting the second version of the headline data release to come out the same.

GBP-EUR Far From Best Conversion Rate Put Pound Recoups Losses

The euro (currency : EUR) therefore benefitted when the official statistic came out at a healthier 0.4% and this afternoon’s session has seen the Pound Sterling euro exchange rate dip back into the 1.3700s. The pair had been changing hands at above the 1.3800 GBP EUR level for the first time since last month during the middle part of today’s euroland session. This test higher, which came in spite of a stronger than anticipated set of euroland data, suggests that the Pound Sterling may be about to re-establish its long standing uptrend against the shared currency.

US Stock Markets Reopen, USD Conversion Rate Shifts Limited Today

Elsewhere, US stock markets re-opened for business for their first session of the week a short time ago following yesterday’s Labor Day shutdown. Friday’s session had been a poor one for American shares, with investors continuing to fret about the apparent slowdown in Chinese economic activity and the potential that the US Federal Reserve might be preparing for its first interest rate hike since the global financial crisis. This morning’s better than anticipated euroland GDP data appears to have informed this afternoon’s positive performance from US stock market performance and the high-yielding export-driven Commodity Dollars have benefitted as a consequence.

GBP-AUD Exchange Rate Approaches 6-Year Best Levels

The Pound Sterling Australian Dollar exchange rate GBP AUD jumped to as high as 2.2108 in early trade today, but the New York opening bell heralded an improvement for the Aussie, sending GBP AUD down to as low as 2.1915 a short time ago. Meanwhile, the Pound Sterling New Zealand Dollar exchange rate put in a similar performance, with GBP NZD tracking Northwards to 2.4554 in early trade before peeling back down into the low 2.4300s a short time ago. Analysts forecast that there could be further losses to come for GBP AUD and GBP NZD if this afternoon’s ‘risk-on’ trading environment persists.

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