Foreign Currency Exchange Rate Predictions For GBP EUR USD CAD

March 25, 2013 - Written by John Cameron

STORY LINK Foreign Currency Exchange Rate Predictions For GBP EUR USD CAD

The POUND STERLING has put in a tame performance in the currency markets at the start of this week’s session, leaking support against nearly all of the other sixteen most-actively traded global currencies. The shift out of Sterling appears to have been precipitated by increased willingness from investors to hold their funds in euro-denominated assets. The Pound is expected to trade on a NEUTRAL TO NEGATIVE footing ahead of this evening’s set-piece speech from Bank of England Governor Mervyn King.

Support for the EURO has wavered during today’s session in spite of last night’s news that the EU/ECB/IMF ‘Troika’ had reached a bailout agreement with Cyprus. The terms of the bailout have raised doubts amongst market participants regarding the wisdom of holding funds anywhere in the eurozone, (with the notable exception of Germany). The current GBP EUR exchange rate stands at 1.1731 and the single currency is expected to trade on a NEUTRAL footing moving forward.

The US DOLLAR has performed no more than steadily on the day, holding its own against the Pound. The generalised Sterling weakness has meant that the net effect of this has sent the GBP USD exchange rate down to 1.5196. Price action for the Greenback on the day is indicative of the shift in the US tender’s relationship with risk. Previously, the weekend news from Cyprus, which caused a major bounce in global risk sentiment, would have served to weaken the ‘Buck’. The outlook for the Dollar is NEUTRAL TO POSITIVE in the near-term.

The CANADIAN DOLLAR has benefitted from the increase in global appetite for risk at the start of this week’s session. The shift out of safe haven assets by institutional investors was triggered by the positive outcome to yesterday’s bailout talks between the EU/ECB/IMF and Cyprus’s leaders. An improvement in investor sentiment towards Europe, which remains a key export market for Canada’s oil industry, has supported the ‘Loonie’, sending the GBP CAD exchange rate down to 1.5498. The outlook for the Canadian tender is NEUTRAL TO POSITIVE.

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