May 20, 2016 - Written by Minesh Chaudhari
STORY LINK Pound to Australian Dollar Exchange Rate Forecast GBP AUD, EUR USD
Pound Sterling (GBP) Exchange Rate Outlook Neutral to Positive
The POUND STERLING (currency : GBP) posted a steady performance yesterday following Wednesday’s sharp move higher across the board.
The UK unit soared in the middle part of the week following the publication of an opinion poll from IPSOS Mori which suggested that the ‘Remain’ campaign leads the ‘Leave’ campaign by 55% to 37% in the EU referendum debate.
Markets are forward-thinking, so if the pollsters continue to predict a thumping victory for ‘Remain’, Sterling is forecast to trade on a NEUTRAL TO POSITIVE bias.
Australian Dollar (AUD) Exchange Rate Outlook Neutral to Negative
A firmer than anticipated set of Australian overall unemployment data, out early yesterday, helped the AUSTRALIAN DOLLAR (currency : AUD).
However, the generalized ‘risk off’ trading environment on the session, which sent global shares and the Aussie Dollar lower, more than cancelled this out. AUD-holders fear further domestic interest rate cuts before the year is out.
In the meantime, the outlook for the Aussie is NEUTRAL TO NEGATIVE and the GBP AUD exchange rate stands at 2.0262.
Euro (EUR) Exchange Rate Outlook Neutral to Negative
The EURO (currency : EUR) did not suffer unduly from yesterday morning’s whole of eurozone Construction Output data, which disappointed to the downside.
Investors instead chose to concentrate on the latest inflation from the euroland, out earlier this week, which revealed that regional prices continue to fall.
The shared currency will struggle to record any meaningful gains while this is the case, so analysts’ forecast that the EUR will trade on a NEUTRAL TO NEGATIVE footing moving forward.
The GBP EUR exchange rate stands at 1.3015.
US Dollar (USD) Exchange Rate Outlook Neutral to Positive
The US DOLLAR (currency : USD) was buoyed by Wednesday evening’s minutes of the most recent US Federal Reserve monetary policy meeting.
The Fed suggested that, providing data releases between now and then point to a firming of the US economy, next month’s policy meeting may yield another US interest rate hike.
Look out for this afternoon’s US Existing Home Sales data as the next tier one risk event in the States; in the meantime, the Dollar forecast is NEUTRAL TO POSITIVE and the GBP USD exchange rate stands at 1.4584.
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TAGS: American Dollar Forecasts Australian Dollar Forecasts Euro Forecasts Pound St Forecasts