- Last Updated: 23 April 2014
GBP LIVE: Sterling Exchange Rate Outlook, News and Views on Wednesday
Pound Sterling (GBP) Outlook Today: Pound Euro Exchange Rate Fails to Advance, Risk of Short Covering Looms
The British pound (GBP) is trading lower against the euro and US dollar today with warnings that further gains may be hard to come by owing to extensive long positioning.
The pound sterling (GBP) is forecasted to maintain a bullish tone against its major currency counterparts in the week ahead.
The pound sterling (GBP) has benefited from a new-found impetus in the latter part of the week past. However, analysts warn further gains will be harder to come by.
The pound sterling (GBP) has benefited from a new-found impetus over the course of the past 24 hours. However, analysts warn further gains will be harder to come by.
The pound sterling (GBP) has powered higher as UK unemployment smashes through the Bank of England's 7% target.
"But with US CPI likely to rise and GBP positioning already a bit stretched, GBP/USD may prove a little vulnerable today."
The British pound (GBP) is seeing mixed conditions at the start of the new week with strength being seen against the euro and NZ dollar in particular.
Live Pound Sterling Rates:
- British Pound / Euro exchange rate:1.2142
- British Pound / US dollar: 1.6775
- British Pound / Australian dollar: 1.8075
- British Pound / Canadian dollar rate: 1.8506
- British Pound / New Zealand dollar rate: 1.9539
- British Pound / South African Rand rate: 17.7645
Daily Forecasts from FuturesTechs
Every day Pound Sterling Live presents a trade idea courtesy of the team at FuturesTechs, the idea includes an entry, exit and contextual relevance for the currency trader. Visit the Daily Forecast Section Here.
Previously, on the EUR-USD:
"Looks pretty bullish going into this new week and I’d be looking to buy dips unless we drop back through 1.3796. >> Read More
On the GBP-USD:
"We would expect to still see the market struggle ahead of the 1.6822 February high." >> Read more
The standout event of today must surely be the continued advance of the British pound against the Australian dollar. Is there more to come?
12:30: Dr. Vasileios Gkionakis consults the looking glass
Dr. Vasileios Gkionakis, Global Head of FX Strategy at UniCredit Bank, has consulted his mystic currency forecasting models. And good news is that GBP is tipped to be on the up!
He says this:
"Next, we turn to our short-term model trading signals. This week, the model suggests going long GBP and CAD against AUD and CHF. Medium term momentum has become supportive of sterling (despite the recent short-term setback) and also for CAD which at the same time saw an increase in 2Y swap rates on a monthly basis. At the same time, the recent big sell off in the Australian dollar did not go unnoticed by our model which now ranks AUD as the worst momentum play in the G-10 universe."
11:10: GBP/AUD continues to enjoy strength
The standout currency action for us continues to be that involving the pound versus the Australian dollar.
Greg Gibbs at RBS says the decline in the Australian currency had been expected:
"We have been forecasting a weaker AUD later this year on a peaking in the resource investment cycle, a weaker outlook for China and prospect of a stronger USD as a sustained recovery moved it close to a halt in its QE policies.
"This view has gained traction and the technical break through 1.02 found willing sellers on medium fundamental grounds.
"It is possible for the AUD to slip further."
11:00: Busy week for sterling lies ahead
Next week will be a busy one for sterling - data releases could well prompt the euro / pound exchange rate to break out of the well established 0.84-.85 range.
"Next week's data calendar in the UK is well stocked. Potential drivers for sterling are CPI, BoE minutes, CBI report, retail sales and the preliminary GDP 1Q13," say UniCredit Bank in a weekly currency note.
10:25: GBP recovers early 2013 losses against Australian dollar
Vaughan Atton at UKForex is forecasting further GBP strength against the Australian dollar:
"It has taken 5 months, but the losses incurred during the first Quarter of this year between GBPAUD and been retraced. The pair has smashed through resistance to test 1.5650 this morning, testing the highest level since January 1st and a major technical level, which if broken would set the pair up for a rally to 1.60."
7:50: GBP firm ahead of market open
The British pound sterling (Currency:GBP) is looking firm across the board as we approach the market open in London:
The pound to euro exchange rate is 0.04 pct in the red at 1.1850.
The pound to US dollar exchange rate is 0.17 pct lower at 1.5243.
The pound to Australian dollar exchange rate is 0.5 pct higher at 1.5646.
Pound to Euro Forecast: Are You Hoping for Higher GBP-EUR Rates? 1.19 is 2014 Average sayUniCredit
In their latest update to their 2014 - 2015 pound euro exchange rate forecasts UniCredit Bank warn the pair will be stuck around the 1.19 level
Why Scotland should peg an 'independent' currency to the British pound sterling
The positive arguments for the retention of the British pound sterling (GBP) by an independent Scotland outweigh the arguments for the establishment of an independent free-floating currency argue Deutsche Bank. Read More.
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