British Pound Sterling Australian Dollar GBP AUD Exchange Rate Forecast EUR USD Outlook

Published: Thursday, 3 December 2015 08:00 BST - Written by John Cameron

STORY LINK British Pound Sterling Australian Dollar GBP AUD Exchange Rate Forecast EUR USD Outlook

Disappointing Construction Output Weighed on Sterling Demand Yesterday

The POUND STERLING (currency : GBP) put in another poor performance yesterday following another below-expectations PMI survey.

This time it was the construction sector; if this morning’s services sector PMI also disappoints, then expect the UK unit to post further losses.

Looking at the bigger picture, recent comments from Bank of England policymakers suggesting that a British interest rate hike remains a long way off also threaten to weigh down Sterling.

The Pound is forecast to trade on a NEUTRAL TO NEGATIVE footing moving forward.

Australian Dollar Rallied following Better-than-Forecast GDP Growth Data

The AUSTRALIAN DOLLAR (currency : AUD) traded strongly yesterday following the release of better than anticipated domestic Q3 GDP growth data.

The news that the Aussie economy is expanding at a year-on-year 2.5% gives Aussie holders hope that the local economy has managed to weather the slump in global commodities prices which began in March 2011.


The next major hurdle for the Australian unit comes on 16th December – if this day marks US interest rate ‘lift-off’, then many analysts expect the Aussie to incur renewed losses.

In the meantime, the outlook for AUD is NEUTRAL TO POSITIVE; the Sterling Aussie exchange rate stands at 2.2440 GBP AUD.

GBP to EUR Conversion Rate Dropped Below 1.4100 Yesterday

The EURO (currency : EUR) convincingly outperformed the Pound during late trading yesterday, sending the GBP EUR exchange rate down to below the 1.4100 threshold.

However, the fundamentals remain extremely worrying for investors holding the shared currency – yesterday’s regional inflation numbers suggest that the European Central Bank’s plan to re-inflate the euroland economy is faltering.

If Mario Draghi takes this as a cue to increase Quantitative Easing and announces an extension to his bank’s already ultra-loose monetary policy later today, then expect the euro to perform on a firmly NEGATIVE footing moving forward.

GBP EUR stands at 1.4104.

GBP to USD Exchange Rate Trending in the Region of 1.935 Today

The US DOLLAR (currency : USD) proved to be the star performer in the global currency markets yesterday afternoon following the publication of a go-ahead set of private sector jobs data.

The labour market numbers bode well for Friday’s all-important Non-Farm Payrolls data.

Yesterday’s positive statement from Federal Reserve Chair Janet Yellen also assisted the Buck; the outlook for the Dollar is now POSITIVE and the GBP USD exchange rate stands at 1.4935.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Euro Forecasts Pound Au Forecasts