Sterling forecast – GDP data and Sterling Exchange Rates

GBP EUR Looks to Employment Figures for Support

Sterling exchange rates are looking toward GDP figures tomorrow at 9:30 am.  This release is forecast to have a big impact on sterling exchange rates as the economy in the UK is seen as fragile.  

Yesterday Ben Bernanke, chairman of the FED reserve continued warnings of economic slowdown in the US and the potential of the US experiencing double dip recession.  If this happens in the US it’s likely that the UK will follow suit as our economy is relatively closely linked to the States.  This would most likely have a negative effect on GBP exchange rates, making other currencies more expensive to purchase. GBPEUR has made good gains recently and in my opinion we are at the top end of exchange rates that we are likely to see over the next month.

AUD exchange rate forecast

One of the few economies to fair well throughout the economic crisis is the Australian economy and as a result the AUD has strengthened significantly.  Unfortunately for anyone holding sterling looking to buy GBP, with further growth predicted for 2010 as trade with China drives the economy, GBPAUD exchange rates are widely expected to continue to fall.  Therefore if you need to buy AUD in the next few months it may be worth carefully considering your options.