GBP to EUR Exchange Rate Predictions, USD & CAD Currency Forecasts

Published: Friday, 23 November 2012 15:00 BST - Written by Toni Johnson

STORY LINK GBP to EUR Exchange Rate Predictions, USD & CAD Currency Forecasts

A very quiet day for the POUND STERLING meant that the UK tender did not gain or lose any significant amount of ground against any of the other sixteen most actively traded global currencies. The mildly positive effect of Wednesday’s Bank of England minutes, which confirmed that there will be no UK rate cut in the near term, appears to have worn off. British quarterly GDP data, penned for release on Tuesday morning, will affect levels on the Pound pairs. Sterling is expected to trade with a NEUTRAL bias until this time.

The US DOLLAR has remained out of favour in the currency markets today. Losses for the Greenback would surely have been of a greater magnitude were it not for the Thanksgiving holiday closedown in the States which has led to much lower than usual trading volumes. It appears likely that debt-addled Greece will be granted its next €30+bn tranche of bailout funding shortly. If tomorrow’s eurogroup of Finance Ministers’ teleconference yields positive news on this front, then the safe haven Buck could leek further support next week. It is therefore anticipated that the Dollar will trade on a NEUTRAL TO NEGATIVE footing in the near-term. The current GBP USD exchange rate stands at 1.5975.

The EURO has once again performed more than creditably on the day. The GBP EUR has tested lower on the session, taking it down to 1.2327 earlier. The fact that GBP EUR has convincingly rejected its July high of 1.2890 during the intervening four months suggests that investors’ belief in European policy makers’ ability to deal with the region’s debt crisis remains strong. A rubber stamping of Greece next lump of bailout money next week could re-enforce this, meaning that the single currency is expected to trade with a NEUTRAL TO POSITIVE bias in the short term.

This afternoon’s Canadian domestic CPI Inflation figures have proved supportive for the CANADIAN DOLLAR, sending the GBP CAD exchange rate from an intraday low of 1.5874 back up into the 1.5900s once more. Next week brings a light Canadian data schedule – the next risk event of note for the ‘Loonie’ coming in the form of next Friday’s Canadian GDP data. In the lead-up to this figure, expect the CAD to trade on a NEUTRAL TO POSITIVE footing.

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