Weekly Foreign Currency Exchange Rate Predictions For GBP EUR USD CAD

June 10, 2013 - Written by John Cameron

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

The POUND STERLING ended last week’s session on a steady footing. A light week for UK data releases this week ensures that tomorrow afternoon’s NIESR quarterly GDP growth estimate for the three months to the end of May takes on added significance. Investors holding Sterling-denominated assets will be looking for a figure of close to or greater than last month’s 0.8% showing to provide further evidence that the British economy is healing. In the meantime, the outlook for the Pound is NEUTRAL.

The EURO has confounded expectations and performed moderately well in recent weeks. Ordinarily talk of negative interest rates for an economy would kill that economy’s tender, but the single currency has held its ground in the aftermath of ECB policymakers’ comments suggesting sub-zero rates are a possibility. However, the suspicion remains that the euro could head sharply lower at a moment’s notice with Thursday’s ECB Monthly Report providing a possible trigger for such a move. The single currency starts the week trading with a NEUTRAL TO NEGATIVE bias and GBP EUR ended lat week at 1.1760.

The US DOLLAR endured a torrid two weeks in the lead up to last Friday’s encouraging domestic labour market data, leaking support against almost all of the other majors with the exception of the Commodity Dollars. US tier one data for this week is loaded into the back end of the session, with Thursday and Friday’s Advance Retail Sales and Michigan Sentiment survey promising to prove crucial. A strong showing from both will be required for analysts to start talking up a winding down of the Federal Reserve’s ongoing QE programme – a development which could see the Buck strengthen once more. The GBP USD exchange rate ended last week at 1.5557 and the outlook for the Greenback is NEUTRAL TO NEGATIVE in the lead-up to Thursday.

The CANADIAN DOLLAR outperformed all of the other sixteen most actively traded global currencies during Friday’s session following the release of domestic job creation data for May which thrashed analysts’ expectations. A better than expected print for last month’s US Non-Farm Payrolls figure added to the positive lustre surrounding the ‘Loonie’ on Friday afternoon, meaning that the Canadian tender heads into this week’s session on a NEUTRAL TO POSITIVE footing. The GBP CAD exchange rate was trading at 1.5851 at Friday’s close.

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