The Australian Dollar to Pound Sterling (AUD/GBP) and Australian Dollar to Euro (AUD/EUR) exchange rates both declined in Friday’s European session in a quiet day for data and amid ongoing Greek negotiations.
Australian Dollar to Euro (AUD/EUR) Exchange Rate Forecast
The Euro has been climbing higher as investors forecast an agreement will be made between Greece and its creditors soon.
— Eleni Varvitsiotis (@Elbarbie) April 24, 2015
Credit Agricole states: ‘EUR remains quite resilient against most G10 currencies despite lingering uncertainty about Greece. One explanation could be that investors are willing to wait for a successful resolution with their confidence in the single currency seemingly boosted by improving EZ data.’
Friday saw German ecostats take a favourable upswing which could also help in building Euro exchange rate sentiment. The German IFO Business Climate ecostat climbed from 107.9 to 108.6 in April, while the German IFO Current Assessment figure rose from 112.1 to 113.9.
As a result of the upbeat numbers, the Euro hit a two-week high of $1.0898 against the US Dollar (EUR/USD).
Nomura currency strategist Yujiro Goto commented: ‘Investors are cutting back short positions which is helping the Euro climb. But in the medium term, we think the Euro’s downtrend is in tact, as the Eurozone’s recovery is not anywhere close to the growth we are seeing in the United States.’
Australian Dollar to Pound Sterling (AUD/GBP) Exchange Rate Forecast
Meanwhile, the Pound Sterling exchange rate is trading in an extremely quiet day for UK data, lending a lot of the Pound’s influence to global developments or political debate. In the run-up to the UK general election, it’s possible that the Pound could become extremely sensitive as investors price in the possibility of a messy election.
Monday could be a little more interesting for the Pound Sterling exchange rate with the release of CBI Trends Total Orders, Trends Selling Prices and Business Optimism figures. The Australian Dollar could also experience some movement on account of Chinese Industrial Profits data.
As China is Australia’s largest trading partner, any developments in the nation can cause severe reactions in the ‘Aussie’ exchange rate.
The Australian Dollar to Euro (AUD/EUR) exchange rate is trending in the region of 0.7167; the Australian Dollar to Pound Sterling (AUD/GBP) exchange rate is trading at 0.5147.