Forex Trading: AUD/USD, GBP/USD, GBP/EUR Forecast for Oct 6
On Friday the AUD fell to more than a four year low against the USD due to stronger than expected US nonfarm payrolls data. It fell as low as 0.8643 and closed at 0.8676. In Australia data showed that retail sales grew just 0.1% in August fuelling concerns about the outlook for economic growth in the third quarter. As a result the AUD is likely to weaken further gains the USD when the markets open.
The GBP also fell against the USD on Friday; it dropped 1.08% to close at 1.5970. The pound came under pressure when a member of the BoE’s monetary policy committee warned that the strong pound is slowing economic growth. Furthermore the UK services purchasing managers index fell to a three month low of 58.7. Again this suggests that the GBP could fall lower against the USD on Monday.
The GBP rose against the EUR on Friday having fallen on Thursday. It closed the week at 1.2758, significantly lower that its weekly high of 1.2870. However, the GBP is generally in much better health than the EUR and with more poor data excepted from Europe the GBP could make back some of its losses from last week.