Exchange Rate Predictions: Outlook for pound sterling, euro, US dollar, Aus dollar, Japanese Yen on Friday
We are seeing the dollar easing back across the board on Friday owing to Janet Yellen's testimony before the US congress. We are also seeing the British pound easing slightly after what has been a positive end to the week.
OCBC Bank's exchange rate predictions on Friday:
Pound dollar exchange rate outlook
Despite broad based dollar resilience and disappointing Oct UK retail sales numbers, the GBP continued to ride on the positive vibes following Wednesday’s BOE Inflation Report.
We however remain somewhat suspect towards excessive upside in the current dollar environment and the pair may remain range bound in the interim. Going ahead, the 1.6150 level may present a near term ceiling while the 1.6000 floor and the 55-day MA (1.5994) may cordon off the pair on the downside.
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Euro dollar exchange rate outlook
EZ GDP numbers from overnight may continue to weigh on the pair into the end of the week while on the technical front, we note that the 55-day MA (1.3497) continues to repel upside probes. Initial support is expected towards 1.3430 before 1.3400 and gravity may prevail given the continued dovish mood set by the ECB in recent sessions.
Dollar Yen outlook
Softer US Treasury yields failed to dent the USD-JPY with the market more focused on the dovish underpinnings of the Japanese authorities. Intra-day, the pair may continue to mull the psychological junction at 100.00 with supportive influences from a positive risk appetite environment. Expect first resistance at 100.60 while 99.80 may offer interim support before 99.50.
Australian dollar to US dollar exchange rate outlook
The AUD continued to under perform across the board on Thursday and in the near term, expect the 0.9400 level and the 55-day MA (0.9409) to continue to cast a shadow on upside prospects. Any potential EM jitters or global growth concerns may also potentially pull the pair back towards the 0.9250 neighbourhood.