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British Pound Sterling GBP Currency Outlook against EUR USD AUD

September 24, 2015 - Written by Tim Boyer

Pound Sterling Exchange Rate Outlook: GBP Under Pressure This Week



The Pound Sterling (currency : GBP) has struggled to push on against the other sixteen most actively traded global currencies during recent weeks thanks to a wholesale downgrading of interest rate expectation from FX analysts. The best guess from economists is that the Bank of England will maintain rates at their current record low of 0.50% for another twelve months and the outlook for the Pound has deteriorated as a consequence. Sterling is expected to trade with a NEUTRAL TO NEGATIVE bias in the short to medium term.

Neutral-Negative Forecast for EURO Conversion Rate Trading: EUR/GBP, EUR/USD News



The EURO (currency : EUR) enjoyed a bout of strong support yesterday afternoon following comments from European Central Bank (ECB) board member Ewald Nowotny during a television interview. The euroland policymaker suggested that he was against any increase in the €65bn per calendar month which the ECB currently commits to its Quantitative Easing programme. The shared currency has benefited from Nowotny’s words but a raft of German business surveys this morning have the potential to end its mini-rally.

The outlook for the euro is NEUTRAL TO NEGATIVE. The current GBP EUR exchange rate is 1.3650.

US Dollar Gains on Pound: USD Outlook Positive



The US DOLLAR (currency : USD) posted strong gains against the Pound Sterling yesterday, sending the GBP USD exchange rate down to its lowest level in weeks at 1.5219. The ‘dot plot’ from this month’s Federal Reserve policy statement revealed that a large majority of the US central bank’s policymakers still anticipate an American interest rate hike before the end of the year – a fact likely to support the Buck moving forward. As long as this afternoon’s US Durable Goods Orders data match or beat expectations, the Greenback is forecast to trade on a NEUTRAL TO POSITIVE footing. GBP USD stands at 1.5252.

Forex Forecast: Chinese Slowdown to Weigh on AUD, CAD, NZD Exchange Rate Trading



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Wednesday morning’s survey of China’s vast manufacturing sector showed a faster than anticipated pace of contraction. The AUSTRALIAN DOLLAR (currency : AUD) briefly shipped support as a consequence, sending the GBP AUD exchange rate down to as low as 2.1617 before it steadied to end the day back in the 2.1700s. Many analysts feel that it is getting to the stage that almost all of the bad news regarding China is out in the open, which explains the price action for the Aussie yesterday. However, with most economists still expecting another interest rate cut from the Reserve Bank of Australia before the end of the year, the forecast for the Aussie is NEUTRAL TO NEGATIVE. GBP AUD stands at 2.1752.

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