Exchange Rate Outlook Today: Short-term forecasts for pound sterling, euro, US dollar and Australian dollar

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Emmanuel Ng at OCBC Bank gives the following predictions:

Euro dollar exchange rate outlook

In spite of largely supported manufacturing PMIs out of the EZ, the EUR-USD peaked near 1.3580 and retraced lower to end largely unchanged by the end of the global session.

The EUR-USD may remain in a supported posture in the near term pending further US fiscal developments (and the ECB today) with support seen towards 1.3450 while 1.3570 may cap for now.

Australian dollar vs US dollar exchange rate outlook

Aug trade numbers and building approvals may provide some domestic guidance in the near term for the pair while the RBA’s McDermott speaks later this morning.

Despite the RBA meeting yesterday, we remain uncommitted to the AUD-USD in the interim although a supported tone may be expected to persist for now.

In the short term, the pair may thus attempt to base build around the 0.9360/00 neighbourhood.

Pound dollar exchange rate outlook

"Despite intra-day dollar weakness, the GBP was undermined by a disappointing Sep manufacturing PMI reading (56.7) and markets are likely to look towards the construction PMI due today for further cues.

"As noted previously, we continue to stay constructive on the GBP-USD in the current circumstances and any breach above 1.6200 may see a test towards 1.6230 while supports are seen on dips towards 1.6160 and then 1.6100."