Foreign Exchange Rate Predictions For GBP vs CAD, AUD, NZD, ZAR & NOK

September 26, 2013 - Written by James Fuller

STORY LINK Foreign Exchange Rate Predictions For GBP vs CAD, AUD, NZD, ZAR & NOK

Another day, another budgetary crisis in the USA. Following the ‘debt ceiling’ and ‘sequester’ stand-offs of recent years, yesterday’s session saw US lawmakers locked in bitter discussions aimed at avoiding an all-out Federal Government shutdown. The clock is ticking – if Democrat and Republican policymakers fail to reach an accord by Monday night then the administrative buildings on Capitol Hill will close and America’s government will cease to govern.

With a Democrat President in the form of Barak Obama and a predominantly Republican lower house in the States, such fiscal face-offs have become commonplace in recent years. Nevertheless, this potentially catastrophic set of circumstances has not failed to cause pronounced shifts in the relative value of many of the world’s sixteen most actively traded currencies.

The CANADIAN DOLLAR leaked support on the day yesterday as investors feared the damaging effect of a continued political impasse in the States might have on Canada’s leading export market. This sent the Pound Canadian Dollar exchange rate up to close to 1.6600 by the later stages of yesterday’s European equities session. This was the highest level for the pair since February 2010.

The risk-sensitive export-dependent AUSTRALIAN DOLLAR also gave up ground against Sterling on the day, sending the GBP AUD exchange rate to within striking distance of a new multi-year high. Meanwhile, the Aussie’s sister currency the NEW ZEALAND DOLLAR also put in a stuttering performance, sending GBP NZD briefly back up above the 1.9500 threshold.

The SOUTH AFRICAN RAND is a notoriously twitchy currency and the shift out of risk by investors over the past 24hrs sent GBP ZAR up by well over 1.00% on the day yesterday. Elsewhere, the rumpus in the US proved to be bad news for the export-dependent Norwegian economy and the NORWEGIAN KRONE alike. The development in the States sent GBP NOK up by an even larger intraday amount than GBP ZAR.

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TAGS: American Dollar Forecasts Australian Dollar Forecasts Canadian Dolla Forecasts