Home » GBP » GBP to AUD » British Pound to Australian Dollar (GBP/AUD) and New Zealand Dollar (GBP/NZD) Exchange Rates Forecast to Strengthen as Shanghai Composite Index Drops

British Pound to Australian Dollar (GBP/AUD) and New Zealand Dollar (GBP/NZD) Exchange Rates Forecast to Strengthen as Shanghai Composite Index Drops

Pound Sterling Currency Forecast

Pound Sterling (GBP) Conversion Rate Predicted to Edge Higher against the ‘Aussie’ (AUD) after UK FTSE 100 Rises

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate ticked higher by around 0.3% on Monday morning.

Despite the fact that Monday’s economic docket is completely absent of British data, the Pound advanced versus the majority of its most traded currency rivals. The appreciation can be linked to an advance in the UK’s top share index the FTSE 100, led higher by Glencore announcing plans to cut a huge amount of debt in the face of wakening metals prices. ‘It’s clear people want us to get the balance sheet in line with potentially lower commodity prices,’ said Chief Executive Officer Ivan Glasenberg. ‘This strengthens the balance sheet even if commodity prices go down further.’

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate is currently trending in the region of 2.1996.

Although fears regarding China’s economic stability are weighing heavily on demand for risk-correlated currencies, the ‘Aussie’ (AUD) advanced versus many of its rivals thanks to positive domestic data. Even the announcement that China cut the 2014 economic growth estimate from 7.4% to 7.3% wasn’t enough to completely offset Australian Dollar gains. One particularly positive Australian ecostats was the AiG Performance of Construction Index for August which advanced from 47.1 to 53.8; breaking thorough the 50 mark which separates growth from contraction.

The Pound Sterling to Australian Dollar (GBP/AUD) exchange rate was trending within the range of 2.1856 to 2.2026 during Monday’s European session.

Pound Sterling to New Zealand Dollar (GBP/NZD) Exchange Rate Predicted to Rally after China Cuts 2014 Growth Estimate

The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate advanced by around 1.0% on Monday morning.

This week will see several influential British economic data publications with the potential to provoke changes for the UK asset. Perhaps the most significant ecostat this week will be Friday’s Bank of England (BoE) Inflation Target for the next 12 months. Given the lack of global inflationary pressure amid tanking commodities prices, many experts predict that the BoE will cut inflation expectations. Thursday’s BoE Interest Rate Decision is unlikely to have a significant impact given that no changes are likely at this time.

The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate is currently trending in the region of 2.4378.

Unlike its Oceanic counterpart, the ‘Kiwi’ (NZD) declined across the board during Monday’s European session thanks to a complete absence of domestic data to provoke changes. The depreciation can be linked to damp market sentiment after China revised 2014 growth from 7.4% to 7.3%. Over the weekend, Zhou Xiaochuan, the head of China’s central bank, said that the ‘correction in the stock market is almost done’ and that China’s currency is steadying after last month’s devaluation. However, Monday’s Shanghai Composite Index ended the Asian session 2.5% down from opening levels, refuelling concern that Beijing’s extensive intervention is not having the desired impact.

The Pound Sterling to New Zealand Dollar (GBP/NZD) exchange rate was trending within the range of 2.4117 to 2.4406 during Monday’s European session.

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