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Dollar Rate Today: Outlook for USD Remains Pressured, Forecasts Suggest Further Declines Possible

A look at the latest dollar rates shows:

  • The pound to US dollar exchange rate is 0.04 pct higher than seen at last night's close at 1.6229.
  • The Euro to US dollar exchange rate is 0.23 pct higher at 1.3610.
  • The Australian dollar to US dollar rate is 0.07 pct lower at 0.9378.
  • The US dollar to Canadian dollar rate is unchanged at 1.0339.

(About these quotes: The above are wholesale figures. Your bank will subtract a discretionary spread to derive profit when delivering or transferring your money. However, an independent FX prover will beat your bank's quote and look to deliver up to 5% more currency. Find out more here).

Outlook for US dollar rates today

We have rounded up the latest short term forecasts from those analysts we follow and note that predictions remain for further US dollar losses:

Regarding the pound sterling to US dollar exchange rate, Geoffrey Yu at UBS says: "With the pair extending the bullish pattern of higher highs/low, any downside will be limited. Support is at 1.6163 ahead of 1.6072. Resistance is at 1.6260, a break above which would open the critical 1.6381."
bank beating dollar exchange rate

With regards to the euro dollar exchange rate Yu says:

"The pair extends its strength and focus is on the major resistance at 1.3711. A break above this would open 1.3833. Support is at 1.3505 ahead of 1.3462."

Sasha Nugent at Caxton FX says the pound sterling is predicted to remain favoured:

"The odds are not in greenback’s favour and the longer the shutdown continues the more pressure the dollar will remain under. With UK data still providing solid results, we predict sterling will remain in control of the GBP/USD rate in today’s session."

Eurozone Service PMI figures have boosted the euro so far this morning. "US data today will need to really impress to see the rate fall. We expect rates to remain above 1.3575 during trading today," says Nugent on the positive outlook for the euro dollar exchange rate.

Luc Luyet is forecasting further gains for the euro against the dollar:

EUR/USD has decisively broken the resistance at 1.3569 (19/09/2013 high), opening the way for a move towards the key resistance at 1.3711. An initial support lies at 1.3577 (intraday high).

"Another support stands at 1.3505 (02/10/2013 high).

"In the longer term, a move towards the resistance at 1.3711 (01/02/2013 high) is expected."

Concerning the pound vs dollar rate, Luyet says the momentum behind GBP could be weakening:

"GBP/USD is in a short-term rising trend, whose support is at 1.6129 (see also the short-term rising trendline). However, the recent inability to move higher than Tuesday's high suggests a potential weakening short-term momentum."

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