Exchange Rate Forecasts

Intra-day exchange rate forecasts: Short term outlook for the GBP vs the EUR, USD, AUD and NZD

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Published on Wednesday, 08 February 2012 11:46

Written by Sam Coventry

UKForex, the foreign exchange rate services firm, has this morning issued the following short-term exchange rate forecasts for the British pound:

GBP/USD: 1.5840 to 1.5980

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GBP/EUR: 1.1940 to 1.2040

GBP/AUD: 1.4590 to 1.4740

GBP/NZD: 1.8880 to 1.9060

As the above data shows, the pound euro exchange rate is under pressure, the forecasted range is one that threatens the 1.2 level, the pound dollar exchange rate is, however, continuing to look firm. The Australian dollar continues to the the winner on the foreign exchange markets, there is little the pound will be able to do about AUD in the short term.

"In fact the U.S. dollar has weakened across the board including vs. the euro as investors start to grow a bit more optimistic over on-going Greek talks. This has also bolstered equity markets and supported an air of positive risk sentiment," says a morning note from UKForex.

Meanwhile, Bernanke testified to the House Budget Committee yesterday but said nothing new.

"It seems short positions in GBP/USD and EUR/USD are now getting trimmed as investors gear up for central bank interest rate decisions from the ECB and Bank of England tomorrow," say UKForex.

The BoE are expected to leave interest rates on hold but are likely to increase their quantitative easing programme from £275 billion to £325 billion