Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, CAD

Published: Wednesday, 14 December 2011 16:47 BST - Written by John Cameron

STORY LINK Foreign Exchange Rates : Currency Predictions - GBP, USD, EUR, CAD

POUND STERLING

This morning’s UK labour market data showed that British unemployment has risen to 2.64m. The rate of UK joblessness rose showed a quarterly rise from 7.9% to 8.3% in the three months to the end of October. The data was largely expected to be poor, so it did not stop the Pound making pronounced gains against nearly all of the major currencies with the exception of the US Dollar and the Japanese Yen. NEAR-TERM OUTLOOK – NEUTRAL.


US DOLLAR – The Pound Dollar exchange rate (GBP USD) is 1.5450

The Greenback once again outperformed all of the other 16 most-actively traded currencies during today’s session, as institutional investors continued to seek out a safe haven for their funds. Global stock indices leaked support as market participants continued to come to terms with the fact that there may be no concrete plan to tackle the Eurozone’s debt crisis from the troubled region’s policy makers until March 2012. NEAR-TERM OUTLOOK – NEUTRAL TO POSITIVE.


EURO – The Pound Euro exchange rate (GBP EUR) is 1.1902

The Euro remained out of favour during today’s session, however there were other currencies which fared worse on the day. Yesterday’s move against the single currency ran out of steam during this afternoon’s European session. When German Chancellor Angela Merkel reaffirmed her commitment to fiscal union for the Eurozone. However, this morning’s weaker-than-anticipated Eurozone Industrial Production data could weigh heavily on the Euro over the remainder of this week’s session. NEAR-TERM OUTLOOK – NEUTRAL.


CANADIAN DOLLAR – The Pound Canadian Dollar exchange rate (GBP CAD) is 1.6062


The Canadian Dollar has struggled to make any headway in the markets on the day, as investors continue to downgrade their expectations for global economic activity over the next 12-24 months. Lower global growth will hit the Canadian economy, which is dependent on the export of commodities, harder than most. However, this afternoon’s Canadian Leading Indicators data beat expectations, providing some hope for investors holding CAD-denominated assets. NEAR-TERM OUTLOOK – NEUTRAL TO NEGATIVE.


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