Best Exchange Rates Seen for Pound to Euro, Canadian Dollar, Rand & US Dollar; Sterling Forecast

January 30, 2014 - Written by Ben Hughes

STORY LINK Best Exchange Rates Seen for Pound to Euro, Canadian Dollar, Rand & US Dollar; Sterling Forecast

The Pound Sterling (currency:GBP) has fared well in recent months, outperforming almost all of the other sixteen most actively-traded global currencies since the start of Q3 2013. The UK tender has consolidated its generalised gains since the turn of the year in the wake of relatively strong British services sector data and last week’s domestic job creation figures, which were the best since 1997. British Gross Domestic Product numbers, published on Tuesday morning, also hinted at a strong underlying recovery in the UK, revealing an annualised increase in the level of British economic activity of a more than respectable 2.8% during the final quarter of 2013.

Pound Rand Exchange Rate Multi-Decade High, Pound Canadian Dollar Mulit-Year High...

Pound Sterling has struck near term highs against many of the majors during recent sessions as a result of the strong data. This week alone has brought a fresh multi-decade high of close to the 19.000 level for the Sterling to South African Rand exchange rate (GBP/ZAR), while the Pound Canadian Dollar exchange rate (GBP/CAD) has climbed to a fresh multi-year high since the weekend. Last week’s session saw the Pound to euro exchange rate (GBP/EUR) spike up to a new 12-month high, whilst the Sterling US Dollar exchange rate (GBP/ USD) is threatening a move into the 1.7000s, having been loitering in the 1.4000s as recently as last July.

However, the Pound Sterling is facing one potential banana skin which could derail its steady progress of the past 9 months – next year’s referendum on independence for Scotland. The UK treasury has already confirmed that should the Scottish people come out in favour of a break from the Union, then the UK government would honour all existing government bonds and the new Scottish government would start its life without any debt commitments.

Meanwhile, the Bank of England Governor Mark Carney cast doubt yesterday on plans for Scotland to share the Pound Sterling as its currency should it vote ‘yes’ to independence. Carney issued a stark warning that if Scotland gets it wrong, then the resultant confusion could lead to similar problems to those suffered by the eurozone in recent years. Such an outcome poses a major threat to the future prospects of the Pound.

Key Pound Sterling, Euro & Dollar Exchange Rates (As of: 11:00 GMT 30/01/2014)

The Pound Sterling to Canadian Dollar exchange rate is trading down -0.61% at 1.84033 GBP/CAD.
The Pound Sterling to Euro exchange rate is trading down -0.2% at 1.21002 GBP/EUR.
The Pound Sterling to US Dollar exchange rate is trading down -0.58% at 1.64622 GBP/USD.
The Pound Sterling to South African Rand exchange rate is trading down -0.73% at 18.56311 GBP/ZAR.
The Euro to Canadian Dollar exchange rate is trading down -0.42% at 1.52091 EUR/CAD.
The Euro to Pound Sterling exchange rate is trading up +0.2% at 0.82643 EUR/GBP.
The Euro to US Dollar exchange rate is trading down -0.38% at 1.36049 EUR/USD.
The Euro to South African Rand exchange rate is trading down -0.53% at 15.34116 EUR/ZAR.

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TAGS: American Dollar Forecasts Canadian Dollar Forecasts Dollar Pound Forecasts Eu Forecasts