STORY LINK Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, AUD, CAD
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POUND STERLING
The Pound has traded sideways against the other majors on the day, with no data of significance released in the UK. Tomorrow sees the release of the closely-watched NIESR GDP Growth Estimate figure for last month; if it suggests that Britain?s economy is slowly grinding towards a standstill again, then the Pound may give up its recent gains against the Euro and the high-yielders. NEAR-TERM OUTLOOK ? NEUTRAL.
US DOLLAR ? The Pound Dollar exchange rate (GBP/USD) is 1.6354
The Greenback has performed strongly on the markets today, against the expectations of most analysts. Investors had feared the worst for the Dollar, following S&P?s downgrading of the US?s credit status late on Friday. However, market participants appear willing to accept the Federal Reserve?s assertion that the leading credit ratings agency has miscalculated America?s debt by some $3bn and are to seeking out the Dollar as a safe haven as equities markets continue to tumble. NEAR-TERM OUTLOOK ? NEUTRAL TO POSITIVE.
EURO ? The Pound Euro exchange rate (GBP/EUR) is 1.1531
The ECB announced yesterday that it is stepping into the bond market to help support ailing Eurozone nations. Although Europe?s central bank failed to confirm which country?s bonds it is purchasing, it is a near-certainty that they include Italy and Spain, whose bond spreads have widened dramatically in recent weeks. However, investors are beginning to lose patience with the ECB, feeling that its policy-makers are treating the symptoms rather than the cause of Europe?s debt problems. NEAR-TERM OUTLOOK ? NEUTRAL TO NEGATIVE.
AUSTRALIAN DOLLAR ? The Pound Australian Dollar exchange rate (GBP/AUD) is 1.5784
The Aussie lost further ground against the other majors in early trading this week as Asian equities continued their recent slide following the announcement by S&P that it was downgrading the US?s credit rating late on Friday. However, the Australian Dollar appears to have stabilised during the European session as speculators take advantage of the massive downward move of recent sessions. NEAR-TERM OUTLOOK ? NEUTRAL TO NEGATIVE.
CANADIAN DOLLAR? The Canadian Dollar exchange rate (GBP/CAD) is 1.6142
Perversely, the Canadian Dollar has suffered significant downside on the day following the US?s credit downgrading, while the Greenback has enjoyed considerable support. The US Dollar is still considered to be a safe-haven despite losing its AAA credit rating, while its Canadian counterpart is increasingly being defined as a high-yielder due to its dependency on the export of commodities, causing it to leak support during the share market collapse of the last ten days. NEAR-TERM OUTLOOK ? NEAGTIVE.
For other live currency exchange rates and a currency converter see the currency news website.
Source: http://www.currencynews.co.uk/forecast/20110808-668_forex-predictions-gbp-usd-eur-aud-cad.html
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