Exchange Rates May 2014: Pound Sterling (GBP), Euro (EUR), US Dollar (USD) & CAD Dollar Exchange Rate Forecast

May 1, 2014 - Written by Frank Davies

STORY LINK Exchange Rates May 2014: Pound Sterling (GBP), Euro (EUR), US Dollar (USD) & CAD Dollar Exchange Rate Forecast

Here's our latest exchange rates forecast May 2014 for the following currencies: Pound Sterling (GBP), Euro (EUR), US Dollar (USD) and the Canadian Dollar (CAD)...

UK Mortgage Approval data, published earlier today, came out slightly below analysts’ expectations, but that hasn’t been enough to hold back the POUND STERLING (currency:GBP) on the day. A PMI survey which suggested that Britain’s manufacturing sector is expanding at a much faster rate than had been expected helped trigger strong support for Sterling against the other majors and the positive sentiment towards the UK tender may increase if tomorrow morning’s PMI Construction sector survey disappoints. In the meantime, Sterling is forecast to trade on a NEUTRAL TO POSITIVE footing.

The EURO (currency:EUR) has given up a little ground against Sterling today, sending the Pound Euro exchange rate up to 1.2183 GBP/EUR earlier. A lack of tier one data releases from the eurozone today has caused the single currency to drift. The next risk event of note for the euro comes tomorrow morning with March’s whole of eurozone employment data. A strong showing could trigger a comeback for EUR GBP, in the meantime the single currency is expected to trade with a NEUTRAL TO NEGATIVE bias.

Support for the US DOLLAR (currency:USD) has slumped on the day, sending the Pound US Dollar exchange rate up to its highest level for over five years at 1.6920 GBP/USD earlier. The Federal Reserve’s decision to scale back its Quantitative Easing programme by another $10bn last night has weighed heavily on the Greenback. The Fed’s positive assessment of the state of the vast American economy suggests that the days of QE may be numbered, meaning that the Buck may be due to make a comeback. The near-term outlook for the Buck is NEUTRAL ahead of tomorrow afternoon’s US employment market data.

The CANADIAN DOLLAR (currency:CAD) has once again given up ground against Sterling today. The Loonie continues to be weighed down by highly disappointing US GDP data for Q1, published 24hrs ago. In combination with a $10bn cut to QE from the US Federal Reserve, yesterday proved to be a nightmare session for the Canadian tender. The Loonie badly needs a strong showing from tomorrow afternoon’s US Non Farm Payrolls job creation data, in the meantime CAD is expected to trade on a NEGATIVE footing. The current GBP CAD exchange rate stands at 1.8562.

Notable Current Pound Sterling Foreign Exchange Rates - As of 14:30 (UK) 01/05/2014

- The Pound Sterling to Australian Dollar exchange rate is trading up +0.19% at 1.82135 GBP/AUD.
- The Pound Sterling to Canadian Dollar exchange rate is trading up +0.23% at 1.85490 GBP/CAD.
- The Pound Sterling to Swiss Franc exchange rate is trading down -0.09% at 1.48406 GBP/CHF.
- The Pound Sterling to Euro exchange rate is trading up +0.03% at 1.21728 GBP/EUR.
- The Pound Sterling to New Zealand Dollar exchange rate is trading up +0.04% at 1.96116 GBP/NZD.
- The Pound Sterling to Turkish Lira exchange rate is trading down -0.23% at 3.55646 GBP/TRY.
- The Pound Sterling to US Dollar exchange rate is trading up +0.03% at 1.68813 GBP/USD.
- The Pound Sterling to South African Rand exchange rate is trading up +0.02% at 17.74946 GBP/ZAR.

Please see the main Currency News UK website for live currency updates/ forecasts and the latest exchange rates data.

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