Currency Rate Forecasts For The Pound Sterling, Euro, US Dollar and Canadian Dollar

Published: Thursday, 22 March 2012 18:00 BST - Written by Tim Boyer

STORY LINK Currency Rate Forecasts For The Pound Sterling, Euro, US Dollar and Canadian Dollar

Extremely poor UK Retail Sales figures held back the POUND STERLING during today’s session. The shop sales numbers showed a significantly lower monthly growth than analysts had been anticipating, meaning that Sterling heads into tomorrow trading to a NEUTRAL bias.

Worryingly weak German PMI survey data, released earlier today, has served to increase investors’ fears that the eurozone’s predominant economic power is starting to strain under the stress of supporting the region’s weaker peripheral states. This saw the EURO come under sustained selling pressure this morning, sending the GBP EUR exchange rate all the way up to 1.2048. With no further data releases of note in the eurozone for the remainder of the week, the single currency is expected to head towards the weekend close on a NEUTRAL TO NEGATIVE footing.

The US DOLLAR has made gains against the other majors during today’s session, as investors’ fear levels regarding China’s economy increased. Last night’s Chinese data showed that the Asian giant’s manufacturing sector contracted for the fifth month in succession last month. Poor US housing sector data has added to safe-haven support for the Greenback today, taking the GBP USD exchange rate to its current level of 1.5816. This leaves the Dollar traded with a NEUTRAL TO POSITIVE bias.

The CANADIAN DOLLAR has lost ground against the rest of the other sixteen most-actively traded global currencies on the day, taking the GBP CAD exchange rate to 1.5807. The CAD came under selling pressure following the release of weak domestic Retail Sales figures for January earlier today. If this feeds into tomorrow’s CPI Inflation numbers, then the Canadian Dollar may trade with a NEGATIVE accent in the near-term.

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