Pound To Euro Exchange Rate Edges Higher, US Dollar & Canadian Dollar Predictions

Published: Wednesday, 29 August 2012 16:00 BST - Written by Ben Hughes

STORY LINK Pound To Euro Exchange Rate Edges Higher, US Dollar & Canadian Dollar Predictions

The POUND STERLING has enjoyed a decent session so far today, making gains against virtually all of the other majors. With the UK economic data schedule once again blank, the move was technical rather than fundamental in nature. Sterling was looking oversold across the board earlier in the week and is now drifting back upwards towards fair value.

The EURO has given up much of yesterday’s gains during today’s session. The shift out of the single currency was partly caused by higher than expected German CPI inflation data, released earlier, which limits the ECB’s scope to further loosen the eurozone’s monetary policy. If tomorrow morning’s German employment data disappoints then the euro could finish the week on a low. The current GBP EUR exchange rate sits at 1.2626.

The US DOLLAR came in for some selling pressure during Europe’s morning session as institutional investors priced-in a high percentage chance that, given the soft tone of recent American data releases, this afternoon’s US Q2 GDP figure might disappoint. As it happened, the number came in on the nose. With share markets slipping, the Buck might strengthen from here. The current GBP USD exchange rate is 1.5850.

The CANADIAN DOLLAR has continued to leak support over the past week. This afternoon’s US growth data may help steady the CAD’s ship, providing encouragement that Canada’s major trading partner is still ‘in growth’. Friday’s domestic GDP number is still the one to watch for the Loonie, however. If it comes out below the anticipated annualised 2.2%, then the potential exists for further selling pressure on the Canadian tender. The GBP CAD exchange rate is 1.5638.

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TAGS: American Dollar Forecasts Canadian Dollar Forecasts Currency Predict Forecasts