Daily Currency Predictions For The Canadian Dollar, The US Dollar, The Pound Sterling and The Euro

Modified: Monday, 5 March 2012 17:08 BST - Written by Ben Hughes

STORY LINK Daily Currency Predictions For The Canadian Dollar, The US Dollar, The Pound Sterling and The Euro

The POUND STERLING has held its ground while other majors, in particular the high-yielders, made their move during today’s session. This morning’s PMI Services for February sector survey came in below expectations, showing a pronounced dip from January’s number, but this failed to hurt the Pound overly, as investors sit on their hands ahead of the Bank of England’s policy announcement on Thursday. It is anticipated that Sterling will trade on a NEUTRAL footing in the lead up to Thursday.

Appetite for risk has drained from the market during today’s session, taking global stock markets lower, as investors fret about US President Obama’s comments of last night which suggested that the world’s leading superpower is considering taking action against Iran. However, this shift into safety has failed to benefit the Greenback significantly, leaving the US DOLLAR to trade with a NEUTRAL bias. This tendency has partly been fuelled by better than anticipated US Factory Orders and ISM Non-Manufacturing Composite data this afternoon. The GBP USD Exchange rate is 1.5874.

The EURO has struggled to make any headway in the markets today – this morning’s whole of eurozone Sentix Investor Sentiment survey came in significantly below expectations, while eurozone Retail Sales numbers cancelled out this negative, by beating expectations. This leaves the euro trading to a NEUTRAL TO NEGATIVE bias as we head towards tomorrow’s Q4 GDP figure for the region. The current GBP EUR exchange rate is 1.1997.

The CANADIAN DOLLAR has suffered a poor day in the currency markets today, sending the GBP CAD exchange rate all the way up to 1.5784 on the session. Global oil prices have moved downwards off last Friday’s 4-year high following China’s downgrade of its domestic GDP target for the year. This has hit Canada’s economy, which is heavily dependent on oil exports, harder than most. With last night’s comments from US President Obama, which apparently threatened action against Iran, also serving to dampen investors’ spirits, the CAD is expected to trade with a NEUTRAL TO NEGATIVE footing in the near-term.

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